EUR USD viewpoint still impartial
10/11/2016 12:56:56 PM
The research team at UOB Group stays impartial on EUR/USD, while a close below 1.1120 should move the stance to bearish in the next weeks
Rather than expanding higher as anticipated, EUR fell back quickly and closed on a weak note. The decline seems to have scope to retest the 1.1100 support but this is a strong level and may not yield so easily (next support at 1.1070).
As pointed out yesterday, in spite of the strong bounce post-nonfarm payrolls, the undertone for EUR is still negative. Based on the current price action, a daily closing below 1.1120 is enough to indicate the start of a bearish phase (for an immediate target of 1.1050). Generally, this pair is expected to stay under pressure unless it can move and stay above 1.1200 within the next few days.