EUR/USD: the euro remains under bearish pressure on the forex (UOB)

UOB's analysis of the EUR/USD:

Intraday analysis

We pointed out last week "that a decline below the minimum of 1.1139 would not be surprising". The EUR then plunged to 1.1116 before recovering quickly. Downward pressures eased and the weakness of the euro in recent days seems to have stabilised. That being said, it's still too early to expect a sustained rebound. The euro is more likely to trade laterally or slightly higher from here.

Short-term analysis

There is not much to add to last week's update. As pointed out, "the increased downward pressure suggests that the euro may weaken further, although it is not clear at this stage whether the next major support level at 1.1070 would enter the scene". Short-term over-sold indicators could first lead to a consolidation lasting a few days. Overall, the EUR is expected to remain under pressure until it can exceed the "key resistance" of 1.1210 (its level was recently at 1.1240). In the future, a break of 1,1070 would shift attention to the "rounded figure" support level at 1,1000.