The pair remains neutral in the near term, while the likeliness of a visit to the 1.1745/50 band stays well on the cards, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “EUR eased off from a high of 1.1718 and the major resistance indicated at 1.1745/50 yesterday was unchallenged. Upward momentum has eased and 1.1718 is viewed as a short-term top. While it is too early to expect a significant pull-back, EUR has scope to test the 1.1630 support. At this stage, a clear break of this level is unlikely (next support is at 1.1590). Resistance is at 1.1695, ahead of the high near 1.1720″.
Next 1-3 weeks: “After touching a high of 1.1733 on Tuesday (28 Aug), EUR has not been able to make much headway on the upside. While upward pressure is starting to wane, there is still scope for EUR to make another run to test the major 1.1745 resistance. That said, this has to happen within these 1 to 2 days as a more prolonged consolidation at these levels would greatly increase the risk of a short-term top. Conversely, a break of the 1.1590 ‘key support’ would indicate that a EUR has made a short-term at 1.1733 on Tuesday”.
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