EUR/USD remains under pressure, targets 1.1915 – UOB

The pair keeps the bearish stance so far and it is seen moving to the 1.1915 level in the short-term horizon.

Key Quotes

24-hour view: “We expected EUR to “edge lower to 1.1960” yesterday but were of the view that the odds for further extension to 1.1930 are not high.

However, EUR managed to touch a low of 1.1936 before ending the day on a weak note. The undertone remains weak but in view of the rather oversold conditions, we expect any further decline from here to be slow and grinding. A move below the 2018 low of 1.1915 is not ruled but a sustained break below 1.1900 today would come as a surprise. On the upside, resistance is at 1.1995 followed by 1.2035”.

Next 1-3 weeks: “EUR exceeded the immediate bearish target of 1.1960 at it dropped to an overnight low of 1.1936. As indicated yesterday, a break of 1.1960 would open up the way for further EUR weakness to the year-to-date low of 1.1915. Downward momentum is still rather strong and a clear break of 1.1915 would shift the focus to 1.1850 (with intervening support at 1.1900). All in, the current bearish phase is unlikely to end so soon. For now, there is no change to the ‘stop-loss’ level at 1.2090”.