EUR/USD bearish below 1.1040 – UOB

Analysts at UOB Group have noted the selling bias around EUR/USD while below 1.1040 in the short term

Key Quotes

“The unanticipated sharp drop to a low of 1.0951 last Friday has shifted the focus to the downside. The next significant support is at 1.0909, the low seen on the day of Brexit. This is a strong support level and a sustained move below this level appears unlikely for now”.

“As highlighted several times in recent updates, a daily closing below 1.0995 would indicate that EUR has started on a move lower to 1.0905/10 (low on the day of Brexit) with decent odds of extending further to 1.0820 (low in early March). The bearish phase just started and in order to maintain the current momentum, any short-term rebound should not move back above 1.1040”.