The pair remains neutral in the near term and keeps alive a test of the 1.1745/50 band in the short-term view, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “EUR traded between 1.1650 and 1.1710 yesterday, relatively close to our expected 1.1655/1.1725 consolidation range. The underlying tone has improved somewhat and from here, EUR could grind higher and test the major 1.1745/50 resistance. At this stage, we do not expect a sustained break of this level (next resistance is at 1.1770 followed by another major level of 1.1790). Support is at 1.1675 followed by 1.1650″.
Next 1-3 weeks: “As highlighted, there is still scope for further EUR strength and the focus is at 1.1745. While a break of this level would not be surprising, we continue to see low odds for a sustained move above the next resistance at 1.1790. That said, overbought shorter-term indicators could lead to 1 to 2 days of consolidation first but as long as the ‘key support’ at 1.1590 is intact (no change in level), it is too early to expect a short-term top”.
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