EUR/USD: UOB shifts back to a short-term short position after the close below 1.1120

UOB has been maintaining a bearish bias on the EUR/USD in recent days pending a close below 1.1120 to shift to a short position, which it initiated yesterday.

"We reported several times in recent updates that a daily close below 1.1120 would bring us back to a perspective where the EUR/USD is expected to drop. The condition was met yesterday as the EUR/USD fell heavily and is now evolving around the next major support level near 1.1040/50. Based on the current momentum, a move below this level would not be surprising and turn the attention towards 1.0950, closely followed by 1.0910, the low point of the Brexit day. If the current price action features a valid break, any short-term rebound should be limited to 1.1140/45."