EUR/USD: short-term support/resistance levels and the technical context we need to monitor

While the pair seems to be hesitating around the support of 1.10 for the second day in a row, and it seems difficult to decide between the possibility of a rebound from this threshold, or an imminent break and downward acceleration, we will take a look at the short-term forecasts of UOB and Commerzbank.
UOB

"The EUR finally fell below the 1.1000 level we reported a week ago and dropped to 1.0993 on Wednesday. Despite a new low, the downward momentum remains lacklustre. As pointed out on Wednesday, while the euro is still under pressure, the prospect of a sustained decline under the next support level at 1.0970 is not high. However, only a move above 1.1065 would indicate that the current downward pressure has eased."

Commerzbank

"The EUR/USD has failed for 4 weeks at the 1.1180 level, and short-term rallies will have to regain 1.1100 in order to trigger a new test at 1.1180. The drop has neutralized the chart - it is not clear if the market will recover to 1.1180 where the 200-day moving average is located, and even less if it will be able to re-reach 1.1269, the top of the channel (but this is slightly favoured as we think the current drop is just a correction). It is also possible that we may observe another final step of decline to the base of the channel at 1.0865 and the Fibonacci retracement at 1.0814 before a sustained recovery occurs."

"Below 1.0879, the next support level will be the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement to the 2017-2018 rally to 1.0814."