EUR/USD: UOB expects decline to pursue to 1.1105, but does not expect 1.12 level to be broken through today

In a note published today, the UOB bank points out that the decrease of the EUR/USD exceeded its expectations when it went under 1.1250, with a low at 1.1200-05 during the night.

"The underlying tone remains weak, but a clear break below 1.12 seems unlikely, at least for today.

Based on current prices, we can anticipate a rebound to 1.13 or even 1.1355/60, a threshold which would then send the pair back towards 1.12.

In terms of the next 1-3 weeks, we nevertheless believe that a further decline is possible down to 1.1105. Indeed, the current weakness of the EUR/USD pair seems unfinished."