Currency strategists at UOB Group noted that the EUR/USD remain prepared for additional losses on a short-term horizon.
24-hour perspective: “The euro fell to 1.1754 yesterday before rebounding rapidly. The downward pressure has eased and the risk of a sustained decline in the EUR is not high. For today, the EUR is more likely to trade sideways slightly lower, waiting for me to be within a range of 1.1750 / 1.1800.”
Next 1-3 weeks: “The euro fell yesterday to a low of 1.1754 before recovering to close at 1.1779 (-0.16%). The downside momentum has improved a bit and the EUR could continue to decline, but at this stage, it is too early to expect a move towards the main support at 1.1700 (There is another support at 1.1730). On the upside, a break of 1.1835 would indicate that the current soft pressure to the downside has eased. “