The pair keeps the neutral stance and is seen between 1.1620/1.1790 in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected the recovery in EUR to extend higher yesterday but were of the view that “a sustained move above 1.1750 seems unlikely”. EUR subsequently rose to a high of 1.1745 before staging a surprisingly rapid and sharp pull-back. The recent upward pressure has eased with the pull-back and the current movement is viewed as part of a consolidation phase. That said, the immediate bias is tilted to the downside but any weakness is unlikely to move clearly below the expected 1.1655/1.1720 consolidation range (there is another strong support at 1.1620)”.
Next 1-3 weeks: “There is not much to add as EUR touched a high of 1.1745 yesterday before easing off. As highlighted yesterday, the recent mild downward pressure has eased and EUR is expected to trade sideways for now, likely within a broad 1.1620/1.1790 range. From a longer-term perspective, EUR has been trading in a relatively quiet manner within a 1.1507/1.1790 range since mid-June and with most indicators at ‘neutral’ level, it appears unlikely that EUR is ready to embark of a sustained directional move anytime soon”.
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