EUR/USD: UOB continues to expect a new test of 1.1330

UOB analysis of the EUR/USD pair:

"Although the EUR/USD closed on a relatively strong note in New York (1.1380, + 0.19%), our opinion remains unchanged:" The euro is under a slight downward pressure and could test the support level at 1,1330". We have had the same point of view for over a week (see the report of 16 January, reported at 1.1415) and since then the EUR has hit 1.1333 on Tuesday (22 January). That being said, price developments over the past 2 days suggest that the current slight downward pressure is fading, but only a move above 1.1440 would indicate that a near-term dip is in place. In order to maintain the current downward pressure, the EUR/USD must evolve and remain below 1.1345 during these 1 to 2 days or a shift above 1.1440 would not be surprising. In the future, a move above 1.1440 would not indicate that the euro is ready to move steadily forward, but rather it would suggest the beginning of a horizontal trading phase.