FX Strategists at UOB Group have shifted the outlook on the pair to bearish and expect a test of 110.10 in the near term.
“The expected ‘deep pullback’ towards 112.00 indicated yesterday morphed into a full-fledged slump as USD plunged to a low of 110.54 at the time of writing”.
“While the decline appears to be running ahead of itself, there is no sign of stabilization just yet and extension to 110.10 seems likely. That said, current level of 111.10 does not offer attractive reward to risk as confirmation of a short-term low is only upon a move back above 111.90”.
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