EUR/USD: Maybank highlights risks of a short-term decline of the pair on the forex

Maybank highlights risks of a falling EUR/USD on the forex in the short term, but maintains a bullish opinion in the medium term.

"EUR/USD has been retreating since recent highs. The eurodollar's attempt to climb encountered an obstacle at 1.2092. We believe that the 1.21-1.22 area will serve as a resistance zone for the moment.

H4 momentum and stochastic indicators also suggest a bearish bias. We do not rule out short-term correction risks around 1.1920 and 1.1870 (21-day moving average).

Resistance is present at 1.2090 (recent peak) followed by 1.2140.

In the medium term, we continue to keep our bullish view on the euro, with strong signs of a recovery in the euro area, with the ECB in the process of normalising its policy, but the rise should remain moderate, with retracement risks in the short term."