UOB Research discusses EUR/USD technical outlook and adopts a bearish bias in the near-term.
"Weekly MACD has turned negative amid clear ‘bearish divergence’ and the break of 1.2000 could lead to a deeper pullback towards 1.1910. At this stage, the odds for EUR/USD to extend lower to the next support at 1.1800 are not high," UOB notes.
"Overall, EUR/USD is expected to trade on its back foot for the next several weeks even though any weakness is viewed as part of a correction and not the start of a major reversal. Only an unlikely break of the 55-week exponential moving average (now at 1.1670) would indicate that 1.2349 is a more significant top than expected currently," UOB adds.