UOB Research discusses EUR/USD technical outlook and maintains a tactical bearish bias in the near-term.
"We have held a negative view on EUR since last Thursday (06 Feb) when it was trading at 1.1000. The subsequent decline has been relatively sharp and rapid and our latest narrative was from Tuesday (11 Feb, spot at 1.0910) wherein a “breach of major 1.0877 support could potentially lead to further rapid decline as next support of note is not until 1.0810”. EUR cracked 1.0877 yesterday (12 Feb) and the focus is at 1.0810 now," UOB notes.
"Overall, there is no early sign that the current weak phase in EUR is stabilizing. Only a move above 1.0950 (‘strong resistance’ level previously at 1.0980) would indicate the weakness in EUR has run its course," UOB adds.