EUR/USD a low in place? – UOB

In view of FX Strategists at UOB Group, the pair could have carved an interim low in sub-1.0500 levels.

Key Quotes

“While EUR moved below 1.0520 as expected, the strong rebound from the overnight low of 1.0492 suggests that a temporary low is likely in place. The current price action is viewed as the early stages of a consolidation phase. In other words, sideways trading is expected for today, likely between 1.0515 and 1.0575”.

“EUR hit a lot of 1.0492 yesterday before rebounding quickly. We highlighted the patchy downward momentum and the price action was not surprising. The recovery indicates that the downward pressure has waned somewhat but as long as 1.0620 is intact, there is still room for another leg lower towards 1.0450/55. That said, this is likely only after the completion of the current short-term ‘consolidation/correction’ phase (which could last for a couple of days)”.