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FX Strategists at UOB Group remain neutral on the pair and do not rule out a test of 1.1505 in the next weeks.

Key Quotes

24-hour view: “EUR dropped sharply to touch a low of 1.1528 yesterday but rebounded quickly. Downward momentum is patchy at best and while a dip to 1.1550 is not ruled out, a break of the 1.1525/30 support seems unlikely. That said, any recovery is likely limited to a test of the strong 1.1645 resistance (next resistance is at 1.1685)”.

Next 1-3 weeks: “Despite the sharp decline that started last week, we are not convinced that EUR has reentered a bearish phase. However, a dip below the year-to-date low of 1.1505 is not ruled out but at this stage, we do not expect any weakness to be sustained (1.1450 is the next strong support). All in, EUR is likely to stay under pressure for the next several days and only a break back above 1.1710 would indicate that the current weakness has stabilized”.