EUR/USD could re-visit 1.1530 – UOB

FX Strategists at UOB Group remain bearish on the pair and believes a test of 1.1530 area stays on the cards in the near term.

Key Quotes

24-hour view: “In line with expectation, EUR extended its decline but did not possess enough momentum to challenge the 1.1560 support. While downward pressure has eased with the recovery from a low of 1.1573, it is too early to expect a sustained rebound. EUR is more likely to consolidate its loss and trade sideways at these lower levels. Expected range for today; 1.1585/1.1655”.

Next 1-3 weeks: “There is not much to add as we just shifted from a neutral to bearish stance last Friday. As highlighted, despite the large decline post-ECB, there is scope for extension to 1.1530. That said, any further weakness would likely be at a slower pace and 1.1530 is expected to offer solid support. Those looking to sell may like to wait for a bounce to 1.1675 with an unchanged stoploss at 1.1755”.