EUR/USD attention is now on 1.1700 – UOB

FX Strategists at UOB Group remain neutral on the pair and believe it could visit the 1.1700 area in the very near term.

24-hour view: “While EUR weakened as expected, the decline did not have enough impetus to challenge the 1.1700 support (low has been 1.1720). From here, despite the lackluster momentum, there is scope for EUR to drift lower towards 1.1700. However, the next support at 1.1665 is not expected to come into the picture for now. Resistance is at 1.1770 and the high registered near 1.1810 yesterday is likely strong enough to cap any intraday recovery”.

Next 1-3 weeks: “EUR surrendered some of the gains made last week but the decline clearly lacks momentum. We continue to view the current price action as part of a neutral consolidation phase. In other words, EUR is expected to trade sideways for now, likely within a broad 1.1655/1.1860 range”.