EUR/USD a test of 1.2204 is now on the cards – UOB

FX Strategists at UOB Group noted the pair’s downside could extend to the key support at the 1.2200 neighbourhood.

Key Quotes

“We highlighted yesterday (22 Feb, spot at 1.2340) that the mild downward pressure in EUR would increase further unless it can reclaim 1.2435”.

“EUR slipped further in overnight trading and is pressuring the solid 1.2275 support at the time of writing. Downward pressure has clearly improved and the odds for further weakness towards the month-to-date low of 1.2204 have increased considerably”.

“Looking further ahead, a clear break below 1.2204 would indicate that EUR has moved into a bearish phase. For now, we hold a ‘negative’ outlook for EUR unless it can move back above 1.2400 within the next few days. On a shorter-term note, 1.2360 is already a strong resistance”.