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In opinion of FX Strategists at UOB Group, the bearish phase in the pair could be drawing to a close.

Key Quotes

24-hour view: “The continuing strength in EUR came as a surprise as it rose strongly and hit a high of 1.1445. While the up-move appears to be running ahead of itself, there is scope for EUR to test the major 1.1460 resistance. A break of this level is not ruled out but the next resistance at 1.1500 is not expected to come into the picture. Support is at 1.1400 followed by 1.1370″.

Next 1-3 weeks: “Instead of consolidating and trading sideways, as expected last Friday (17 Aug, spot at 1.1375), EUR extended its rebound and hit a high of 1.1445. The ‘stop-loss’ for our bullish view at 1.1460 appears to be vulnerable and a break of this level would indicate that the bearish phase that started early last week has ended. The swift and sharp recovery from last Wednesday (15 Aug) 1.1297 low came as a surprise and suggests EUR could move into a consolidation phase sooner than expected (we are not anticipating a bullish reversal for now). Overall, unless EUR can move and stay below 1.1370 within these couple of days, a break of the ‘stop-loss’ seems likely”.