In opinion of FX Strategists at UOB Group, EUR/USD seems to have lost some upside pressure.
Key Quotes
24-hour view: “While our view for EUR to “edge higher towards 1.1095″ was correct (high of 1.1096), the subsequent sharp and swift pull-back from the top was not expected. The rapid decline appears to be running ahead of itself but there is room for EUR to test 1.1040 first before the weakness should stabilize (next support is at 1.1010). Resistance is at 1.1080 followed by 1.1095. The latter level is acting as a solid resistance now”.
Next 1-3 weeks: “EUR touched a 2-week high of 1.1096 before dropping back quickly to end the day lower by -0.13% (1.1057). While the ‘strong support’ level at 1.1040 is still intact, the soft daily closing is enough to indicate that the recent mild upward pressure has eased. In other words, EUR is likely to continue to trade sideways between 1.1010 and 1.11115 for a while more (we previously expected EUR to trade sideways with an upside bias)”.
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