EUR/USD is tilted to the downside - UOB Group

Bias for Euro (EUR) is tilted to the downside vs US Dollar (USD); any decline is likely limited to a test of 1.1280. In the longer run, current price movements are likely part of a consolidation phase between 1.1225 and 1.1410, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Any decline is likely limited to a test of 1.1280

24-HOUR VIEW: "EUR traded between 1.1278 and 1.1381 two days ago. Yesterday, we pointed out that 'The price action did not result in any increase in either downward or upward momentum.' We expected EUR to 'trade in a range between 1.1290 and 1.1390.' EUR subsequently rose to 1.1378 before dropping sharply to a low of 1.1291 in the late NY session. While there has been an increase in downward momentum, it is not sufficient to suggest a sustained decline. Today, the bias for EUR is tilted to the downside. As momentum is not strong, any decline is likely limited to a test of 1.1280. The major support at 1.1225 is not expected to come into view. Resistance is at 1.1335; a breach of 1.1360 would suggest the current downward bias has faded."

1-3 WEEKS VIEW: "We continue to hold the same view as Monday (06 May, spot at 1.1310). As highlighted, we view the current price movements as part of a consolidation phase and expect EUR to trade between 1.1225 and 1.1410 for now."