EUR/USD needs to regain 1.17 to alleviate downside pressure – UOB
According to FX Strategists at UOB Group, a breakout of the 1.1700 handle should signal the end of the bearish phase.
“EUR dipped to a low of 1.1578 yesterday, holding just above the ‘post-ECB’ low of 1.1573. While the bearish phase that started more than a week ago is still deemed as intact, downward momentum appears to be struggling and the prospect for further weakness towards 1.1530 has diminished”.
“That said, only a move back above 1.1700 (‘stop-loss’ level unchanged) would indicate that the bearish phase has ended. On a shorter-term note, a break of 1.1665 would be an ‘early’ indication that an interim low is imminent. In view of the above, those who entered short at the suggested level of 1.1675 may like to exit half of their position at 1.1540, just above the strong 1.1530 support”.