The pair remains neutral and could slip back to the 1.1400 area in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Against our expectation, the major 1.1430 support continues to hold as EUR staged a surprisingly robust and resilient rebound from a low of 1.1431 and hit a high of 1.1534. The recovery appears to be running ahead of itself and further sustained advance is not expected for today. EUR is more likely to consolidate its gains and trade sideways at these higher levels, expected to be within a 1.1470/1.1540 range”.
Next 1-3 weeks: “EUR failed to break the 1.1430 support last Friday, staged a robust rebound from a low of 1.1431 and hit a high of 1.1534. The price action is incongruent with our view wherein we think the major support 1.1400 support is ‘vulnerable’. However, only a break of the ‘key resistance’ at 1.1540 (no change in level) would indicate that the current downward pressure has eased. That said, the prospect for a break of 1.1400 has clearly diminished”.
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