EUR/USD: a test of 1.10 loses traction – UOB

According to FX Strategists at UOB Group, the pair’s potential move to 1.10 seems to have run out some momentum for the time being.

Key Quotes

“Against our expectation, EUR eased off and the 1.0950 resistance was unthreatened (high of 1.0936). While lacking in momentum, the decline appears to room to extend lower towards 1.0850. At this stage, a sustained move below this level is not expected (next support at 1.0810)”.

“EUR traded in a narrow range of less than 50 pips yesterday (between 1.0886 and 1.0933). While we continue to hold a bullish view (since last Wednesday, 26 Apr, spot at 1.0905), we are aware of the rapidly waning upward momentum. As indicated yesterday, EUR has to break above 1.1000 sometimes this week or the risk of a short-term top would increase further”.