FX Strategists at UOB Group stay bullish on EUR/USD, adding that there is still scope for a test of 1.12 in the next weeks.
“While the ‘bearish outside day’ registered yesterday does not bode well for our current bullish view, the price action is deemed as part of a short-term consolidation phase and not the start of a reversal”.
“That said, upward momentum has clearly been dented and it may take a few days before we see the next push higher to 1.1200”.
“On the downside, an unexpected break below the stop-loss at 1.1045 would indicate the start of a deeper pullback (likely to below 1.1000). In the meanwhile, those who are long may likely to consider reducing their position on any move to 1.1170”.