The pair could attempt a visit to the 1.1900 level in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “While we highlighted last Friday that a “temporary top is in place”, the anticipated weakness in EUR was more pronounced than expected as it easily took out the 1.1750 support to hit a low of 1.1724. The down-move appears to be running ahead of itself and the swift rebound from the 1.1724 low suggests that EUR has moved into a consolidation phase. In other words, EUR is expected to trade sideways from here, likely within a 1.1740/1.1820 range”.
Next 1-3 weeks: “After closing higher for four consecutive days, EUR slipped last Friday and closed -0.26% lower at 1.1766. Despite the ‘weak’ price action, we continue to detect a positive undertone and are not ruling out the possibility that EUR could stage a stronger corrective rebound to 1.1900. Only a break of the ‘key support’ at 1.1690 (level remains the same) would indicate the current positive bias has eased”.
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