UOB Research discusses EUR/USD technical outlook and maintains a tactical bearish bias in the near-term.
"We highlighted last Friday (07 Feb, spot at 1.0980) that “downward momentum has improved further” and added, “EUR could move towards 1.0945”. Our view was correct as EUR dropped quickly to a low of 1.0940. The subsequent weak closings (both daily and weekly) suggest further EUR weakness would not be surprising. The next support of note is at the 2019 low of 1.0877 (there is a minor support at 1.0910)," UOB notes.
"In view of the solid downward momentum, 1.0877 appears to be within reach. Only a move back above 1.1010 (‘strong resistance’ level was at 1.1040 on Friday) would indicate the current downward pressure has eased," UOB adds.