EUR/USD: the euro seems to want to achieve a stronger rebound on the forex (UOB)

UOB analysis of the EUR/USD pair:

Intraday analysis

Previous expectations for a consolidation of the EUR/USD pair were incorrect, as it recorded a relatively strong rebound that reached a peak of 1.1255. Although there is no significant recovery in the upward momentum, the current recovery is intended to test 1.1275. At this stage, a sustained movement above this level seems unlikely (the next resistance level is at 1.1300). Support is at 1.1220 followed by 1.1200.

Short-term analysis

After reaching new "lows" for several days in a row, the EUR/USD rebounded relatively strongly and tested our "key resistance" at 1.1255 (the EUR hit 1.1255 during London time). We have been adopting the same opinion since Friday (29 March) that the EUR could go back to the 7 March low of 1.1174. That being said, we stressed that "the downward momentum is lackluster and the prospect of a sustained decline below 1.1174 is not great". After Wednesday's price movements, it is likely that the EUR bottomed out at 1.1181 on Tuesday (2 April). However, it is too early to expect sustained growth. The current move is perceived as a corrective recovery and the euro is expected to trade with a bullish bias towards 1.1300. At this stage, the probability of move beyond the next resistance at 1.1330 is low. On the downside, 1.1174 should remain uncontested, at least for the coming week.