EUR/USD: the euro has potentially recorded a short-term top (UOB)

UOB notes that the EUR/USD could correct itself lower in the short term.

"Recent upside pressures eased as the EUR/USD posted a surprise correction on Friday and broke key support at 1.1590.

We indicated that a breakout of 1.1590 would suggest that a short-term top is in place.

In other words, we do not think that the EUR/USD will rise above the 1.1733 peak during the week.

The weakening tone suggests that the EUR/USD could slide lower, but at this point we see any decline as part of a consolidation range and not the beginning of a sustained decline."