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In opinion of FX Strategists at UOB Group, the pair’s downside pressure appears alleviated in the near term.

Key Quotes

24-hour view: “Against our expectation for sideway trading, EUR rose to hit a high 1.1719 before ending the day on a strong note, The recovery has scope to extend higher but at this stage, a sustained move above the next resistance at 1.1750 seems unlikely (minor resistance is at 1.1720). On the downside, only a break of 1.1665 would indicate that the current upward pressure has eased (minor support is at 1.1685)”.

Next 1-3 weeks: “EUR touched a high of 1.1719 yesterday, just one pip below the ‘key resistance’ at 1.1720. While the ‘key resistance’ is still intact, the relatively strong daily closing in NY (closed at 1.1704, +0.41%) is enough to indicate that the recent mild downward pressure has eased. However, there is no change to the neutral outlook and EUR is expected to trade sideways for now, likely within a broad 1.1620/1.1790 range (we previously expected EUR to dip towards 1.1570)”.