EUR/USD still room for a test of 1.1100 – UOB

In view of FX Strategists at UOB Group, the pair’s outlook remains neutral, with a potential test of 1.1100 still on the cards.

Key Quotes

“EUR hit a low of 1.1117, holding well above the major support indicated at 1.1105/10 yesterday. While downward momentum is not that strong, there is ample room for further weakness towards 1.1105/10. A break below this level would shift the focus to 1.1070 but based on the current momentum, this level is unlikely to come into the picture for now. Resistance is at 1.1155 followed by 1.1175 which is acting as a very strong level now”.

“Downward momentum continues to improve and the risk of a break below 1.1105/10 increased further. As highlighted yesterday, a break below 1.1105/10 would indicate that EUR has moved into a bearish phase with an immediate target of 1.1025. This scenario would not be surprising unless EUR can move and stay above 1.1175 within these few days”.