EUR/USD: UOB explains how to trade the euro after ECB meeting, leans toward bearish bias

UOB has just delivered its short-term outlook for the EUR/USD this morning, while the ECB meeting will take place this afternoon:

"In view of the ECB meeting today, an exit from the current range would not be surprising but the direction of the break will be difficult to determine.

The daily MACD is declining, and with an internal dynamic that shows signs of weakness, the biggest risk appears to be on the downside. However, 1.13 is a major support level and it will have to be broken before we can rely on a steady decline of the EUR/USD in the coming days.

That said, the next support level under 1.13 is not far away at 1.1240 and since this threshold is linked to several support levels, it can be considered major. Under 1.1240, we will then have to go all the way down to 1.1085 for the next important threshold levels.

On the upside, we can consider that a move above the resistance level of 1.1415-20 would not be surprising, but the 1.1460 threshold seems solid enough to contain any rises."