EUR/USD: the euro seems able to pursue its decline in the very short term (UOB)

UOB notes that bearish pressures are strengthening against the EUR/USD in the very short term.

"The EUR/USD has finally broken its first trend line and dropped to a low at 1.2219. The bearish momentum has further improved, and the monthly low at 1.2204 seems in sight.

A clear break of this important support level would suggest that the current EUR/USD drop has the potential to expand towards the next major support just below 1.2100.

For the next few days, bearish pressures could strengthen, unless the EUR/USD is able to reclimb above 1.2350. In the shorter term, 1.2295 is already a pretty solid resistance level."