EUR/USD top could be in place – UOB

In opinion of analysts at UOB Group, EUR/USD could have posted a short term peak at recent levels above the 1.1200 handle.

Key Quotes

“The rapid and sharp pull-back in EUR was unexpected. Upward pressure has clearly eased and the pull-back appears to have scope to extend lower to test the strong 1.1105/10 support”.

“While the stop-loss for our bullish EUR view at 1.1130 is still intact at the time of writing, the unexpected sharp drop yesterday clearly indicates an increased risk of a short-term top. A move below 1.1130 would shift the outlook to neutral and suggest a period of broad sideway consolidation has started. This appears likely unless EUR can move and stay above 1.1215 within these 1 to 2 days”.