EUR/USD could drop further on a breach of 1.1160 – UOB

In view of analysts at UOB Group, EUR/USD could shift to a bearish outlook on a breakdown of 1.1160.

Key Quotes

“EUR dipped below the support indicated at 1.1160 yesterday (low of 1.1156) but rebounded to end the day largely unchanged. The recovery appears to have scope to extend higher but any up-move is expected to encounter stiff resistance at 1.1220/25”.

“As highlighted yesterday, while the short-term risk is on the downside, we prefer to see a clear break below 1.1160 before turning bearish. EUR dipped to a low of 1.1156 but rebounded quickly. However, the undertone remains weak and unless EUR can move and stay above 1.1240, the predominating risk is still on the downside”.