EUR/USD potential pullback to 1.0615 – UOB

FX Strategists at UOB Group noted there is scope for the pair to slip back to the 1.0615 area in the near-term.

Key Quotes

“The ease of which the strong 1.0700 support was taken out came as a surprise (low has been 1.0653)”.

“EUR has likely made a short-term top at 1.0825/30 last week and the current pull-back from the high appears to have room to extend lower towards 1.0615, possibly extending to 1.0575”.

“At this stage, a sustained move below 1.0575 seems unlikely. Resistance is at 1.0735 but only a move back above 1.0760 would indicate that the immediate downward pressure has eased”.