EUR/USD shifted to neutral, supported at 1.1100 – UOB

The research team at UOB Group has now shifted its outlook on EUR/USD to bearish from neutral, expecting strong support around 1.1100.

Key Quotes

“The unexpected sharp drop last Friday coupled the weak daily and weekly closing has shifted the outlook for EUR to bearish”.

“That said, the price action seems to be similar to that in late August where the sharp decline in a single day extended lower but the down-move was quickly reversed a few days later”.

“From here, we expect any weakness in EUR to encounter solid support at 1.1100. In order to maintain the current bearish momentum, any short-term rebound should not move above 1.1240 (1.1200 is already a strong short term resistance)”.