EUR/USD ready to resume the downside below 1.1160 – UOB

FX Strategists at UOB Group noted EUR/USD could see further losses on a close below 1.1160.

Key Quotes

24-hour view: “Yet another indecisive day for EUR as it posted another ‘inside day’ on Tue, in an uninspiring 1.1169/1.1228 range. Although spot is now nearer to the 1-week range low at 1.1160, it is probably not advisable to forerun a downside move until support at 1.1140 is taken out convincingly. Otherwise, we still expect yet another consolidative day with resistance still at 1.1230”.

Next 1-3 weeks: “While upwards momentum appears strong, we are still not convinced to transit into a ‘positive phase’ as yet. As such, EUR is likely to consolidate recent gains and trades in a higher range between 1.1200 and 1.1300. A drop below 1.1160 indicates that the recent strength in EUR has run its course and may be resuming its downtrend”.