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The pair remains bearish in the near term and it is seen within 1.1580/1.1800 range, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for sideway trading was wrong as EUR rose to a high of 1.1724 before easing off. While upward momentum is patchy at best, there is scope for a test of the strong 1.1730 resistance before a more sustained pull-back can be expected. At this stage, a clear break above 1.1730 seems unlikely (next resistance is at 1.1755). Support is at 1.1660 followed by 1.1620″.

Next 1-3 weeks: “EUR touched a high of 1.1724 yesterday, several pips below the ‘stop-loss’ level for the current bearish phase at 1.1730. As highlighted yesterday, the odds for further EUR weakness have diminished but only a break of 1.1730 would indicate that a short-term low is in place. From here, unless EUR can move and stay below 1.1580 by end of today, a break of 1.1730 would not be surprising. Looking forward, a breach of 1.1730 would suggest a slightly higher EUR in the days to come but any strength is viewed as part of a 1.1580/1.1800 neutral consolidation phase and not the start of a sustained up-move”.