EUR/USD still bearish, targets 1.1530 – UOB

FX Strategists at UOB Group stay bearish on the pair, which keeps targeting the 1.1530 area in the next weeks.

Key Quotes

24-hour view: “The target highlighted at 1.1675 was not reached as EUR traded within a relatively narrow 1.1623/1.1661 range. The consolidation phase appears incomplete and further range trading is expected albeit likely at a higher 1.1630/1.1680”.

Next 1-3 weeks: “EUR has been consolidating within relatively narrow ranges after the sharp decline late last week. As highlighted in recent updates, despite the oversized drop, there is scope for extension towards the next support at 1.1530. That said, downward momentum has eased somewhat with the consolidation. However, only a break back above 1.1755 (stop-loss level unchanged) would indicate that a short-term low is in place. Until then, a push lower towards 1.1530 is not ruled out even though the odds for such a move have diminished. Positioning wise, those looking to sell may like to wait for a bounce to 1.1675”.