EUR/USD further losses unlikely – UOB

In opinion of FX Strategists at UOB Group, the likeliness of further pullbacks in EUR/USD has lost some momentum.

Key Quotes

“EUR eked out a ‘fresh low’ of 1.0634 before rebounding quickly. A short-term bottom is likely in place but it is too early to expect a sustained recovery. That said, as long as the support at 1.0630/35 is not taken out, this pair is expected to grind higher towards 1.0705”.

“EUR edged below Monday (03 Apr) low of 1.0641 to touch 1.0634 but rebounded quickly to close higher for the day. The pull-back from last week’s 1.0904 high is showing early signs of basing but until 1.0730 is taken out, another push lower towards the major 1.0595 support could not be ruled out just yet. That said, the odds for such a move have diminished”.