EUR/USD focus has now shifted to 1.0950 – UOB

The research team at UOB Group note the now bearish outlook on EUR/USD and expects the pair to test the mid-1.0900s.

Key Quotes

“We have highlighted several times in recent updates that a daily closing below 1.1120 would shift the outlook for EUR to bearish”.

“The condition was met yesterday as EUR dropped sharply in overnight trading and is currently hovering around the next major support near 1.1040/45 (minor low in early August & rising trend-line support)”.

“Based on the current momentum, a move below this level would not be surprising and would shift the focus towards 1.0950 followed closely by the 1.0910 low seen on the day of Brexit”.

“If the current price action is a ‘valid break’, any short-term recovery should be shallow and should not move back above 1.1140/45”.