EUR/USD: UOB and Commerzbank identify key price points to monitor in the short term

In an analysis released yesterday, UOB Bank explains that it still expects the EUR/USD pair to test the annual short-term lows:

"The expectation of a drop of the euro below 1.1100 did not materialise as it rebounded sharply, reaching a high of 1.1181. A move above 1.1190 wouldn't be surprising, but given the sluggishness of the dynamics, a failure at the next resistance level at 1.1215 seems highly unlikely. The first support level is at 1.1145, followed by 1.1120. The level of 1.1100 acts as solid support and should not be taken into account.

In the longer term (2-3 weeks), a daily close below the major support level at 1.1100/05 would be needed to indicate that a move towards 1.1050 has begun. Given current sluggish dynamics, the outlook for such a scenario is not high, but the euro should rise above 1.1190 to indicate that the current slight downward pressure has eased. Meanwhile, the EUR is expected to trade with a downward bias and test 1.1100/05."

Commerzbank also displays a comparable opinion in a note that was also released yesterday:

"The EUR/USD fell last month below the 55-day moving average to 1.1222. It is on the defensive but also seems reluctant to support a break below 1.1106. We must overcome the 55-day moving average, the recent peak at 1.1264 and the 2018-2019 downtrend line at 1.1287 to reduce downward pressure and reaffirm upward interest. It will probably take several attempts to achieve this.

Be aware that as long as the recent lows at 1.1110/06 remain in place, the trend that is emerging is a potential bullish reversal."