The demand for the single currency remains subdued during the first half of the week, taking EUR/USD to test recent lows in the 1.0870/50 area. Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued “following on from last weeks break below the base of the channel the market has maintained downside pressure. We regard the close below the channel as the trigger for the resumption of the bear trend and target a move to 1.0560/1.0457”. The research team at UOB Group added “We just turned bearish EUR yesterday and there is no change to the view. As mentioned, we have a modest target of 1.0810 with a stop-loss at 1.1030 even though 1.0965 is already a strong resistance”. For more information, read our latest forex news.