EUR/USD: the euro still demonstrates vulnerability on the forex (UOB)

UOB's analysis of the EUR/USD:

Intraday analysis

The expectation "renewed weakness" of the EUR/USD on Friday didn't materialise, the pair having posted a bullish rally that hit 1.1246 during the New York hours. The downward pressure has eased with the rebound and the current rise of the euro could still increase. However, any further progress is considered to be part of a 1.1215/1.1270 consolidation range and not as the beginning of a sustained increase.

Short term analysis

Despite the EUR/USD's relatively robust recovery, our point of view does not change. As pointed out on Friday (8 March, at 1.1195), "the EUR is vulnerable and the focus is on 1.1120". The current short-term movement is considered to be part of a consolidation phase that may last a few days. Only an unlikely break of "key resistance" at 1.1290 (no change in level) would indicate that the euro's current weak phase has stabilised.