EUR/USD neutral near term – UOB

FX Strategists at UOB Group remain neutral on the pair, which is expected to navigate between 1.1770 and 1.1980 in the next weeks.

Key Quotes

24-hour view: “The extended decline in EUR was unexpected. The breach of several strong support levels coupled with the weak daily closing suggests further downward pressure. Barring a move back above 1.1940, EUR is expected to stage another push lower towards the next strong support near 1.1840 (before a more sustained recovery can be expected). The next support at 1.1800 is unlikely to come into the picture”.

Next 1-3 weeks: “While we highlighted the diminished odds for further EUR strength yesterday, the ease of which the stop-loss at 1.1900 was taken out came as a surprise. EUR has likely made a short-term top at 1.2069 two days ago and the current movement is viewed as the early stages of a consolidation phase. From here, this pair is expected to trade sideways within a broad range, even though the immediate bias is for a probe lower towards the bottom of the expected 1.1770/1.1980 consolidation range”.