EUR/USD: the euro may revisit recent lows (UOB)

UOB analysis of the EUR/USD pair:

Intraday analysis

On Friday, the EUR/USD moved sideways between 1.1207 and 1.1247, which is below our lateral trading range of 1.1200/1.1225. The almost unchanged New York close at 1.1218 (-0.03%) suggests that the euro is still trading in a consolidation phase. In other words, the euro is expected to continue to move sideways for the time being, probably between 1.1205 and 1.1255.

Short-term analysis

We have pointed out in recent updates that a New York close below 1.1220 would indicate that the EUR/USD is ready to "revisit the 7 March low of 1.1774". While the euro closed down -0.02% (1.1217) in New York last Friday, it is enough to indicate that it is possible that the euro will return to 1.1174. That being said, the downward trend has not improved significantly and the prospect of a sustained decline below 1.1174 is not high (the following levels of support are at 1.1145, followed by 1.1110). On the upside, a move above 1.1300 would indicate that the current slight downward pressure has eased.