EUR/USD gathering downside momentum – UOB

In opinion of analysts at UOB Group, EUR/USD could accelerate its decline to the 1.0900 neighbourhood in the next weeks.

Key Quotes

“While EUR stayed below the strong 1.1060 resistance (high of 1.1058), the anticipated weakness fell short of the 1.0960 target with a low of 1.0979. The subsequent rapid swing higher from the low has resulted in a rather mixed outlook and from here, sideway trading seems likely”.

“As highlighted, while downward momentum has improved, only a daily closing below 1.0995 would indicate that a move towards 1.0905/10, 1.0820 has started. This scenario still seems likely unless EUR can move back above 1.1120 from here (1.1060 is already a strong short-term resistance)”.