EUR/USD a test of 1.0450 appears less likely now – UOB

A potential visit to the mid-1.0400s seems to have run out steam for the time being, according to FX Strategists at UOB Group.

Key Quotes

“We highlighted last Friday that “only a move back above 1.0620 would indicate that the immediate downward pressure has eased”.

“EUR hit a high of 1.0617 during NY hours but eased off from there. However, the pull-back from the top is clearly lacking in momentum and while the immediate pressure is still on the downside, the odds for another leg lower to 1.0450/55 are not high (last week’s 1.0590/95 is already a very strong support)”.

“Key short-term resistance remains at 1.0620 for now”.