EUR/USD: the euro can still retreat but beware of rebound risks that may follow (UOB)

UOB estimates that a further decline of the EUR/USD would not be surprising, but also points to rebound risks that must be monitored.

"The EUR/USD target at 1.1935 was exceeded when the pair dropped to 1.1914.

The bearish momentum is showing signs of weakening, but a new bearish phase towards the next support level at 1.1900 would not be surprising (before a stronger recovery can be expected).

The odds for a further decline to the next support level at 1.1870 are not high.

On the upside, stabilisation requires a move above 1.1975 (minor resistance at 1.1950)."