EUR/USD negative on a close below 1.1120 – UOB

In view of the research team at UOB Group, EUR/USD’s outlook would shift to bearish on a close below 1.1120.

Key Quotes

“While EUR moved lower to 1.1100 as anticipated (low of 1.1101), the sharp and rapid rebound from the low was unexpected. The recovery appears to have scope to extend further but a clear move above last week's peak of 1.1235/40 seems unlikely”.

“As highlighted last Friday, only a daily closing below 1.1120 would shift the current neutral outlook to bearish. EUR dipped to a low of 1.1101 but rebounded quickly and ended the day way above 1.1120. That said, the undertone still appears negative and another attempt to move below 1.1100 could not be ruled out just yet”.