EUR/USD upside pressure mitigated – UOB

FX Strategists at UOB Group noted the upside momentum around the pair seems alleviated for the time being.

Key Quotes

“The critical 1.2425 resistance indicated in recent updates remains intact as EUR staged a relatively sharp decline yesterday after touching a high of 1.2400. While the ‘key support’ at 1.2310 is still intact (overnight low of 1.2327), the weak daily closing in NY is enough to indicate that the recent mild upward pressure has eased (we previously expected the short-term strength to extend further to 1.2425)”.

“However, there is no change to the neutral outlook but from here; it appears that EUR has moved into a consolidation phase. Near-term, the bias is tilted to the downside but any weakness is viewed as part of 1.2260/1.2400 sideway trading range instead of a sustained decline”.