In opinion of FX Strategists at UOB Group, further pullbacks in EUR/USD are seen limited around the 1.1285 level for the time being.

Key Quotes

24-hour view: “EUR traded in a relatively quiet manner between 1.1315 and 1.1356 yesterday before closing at 1.1341 (+0.14%). Momentum indicators are mostly neutral and EUR is likely to trade sideways for today, expected to be within a range of 1.1320/1.1370.”

Next 1-3 week: “Our latest narrative was from Monday (17 Jan, spot at 1.1410) where we highlighted that ‘upward momentum is beginning to wane and a break of 1.1390 would indicate that 1.1515 is out of reach’. EUR subsequently fell sharply. Despite the sharply decline, downward momentum has not improved by much. There is a slight downward bias from here but any weakness is likely limited to a test of 1.1285. On the upside, a breach 1.1400 would indicate that the current mild downward pressure has eased.”