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According to FX Strategists at UOB Group, there is still scope for the pair to visit the 1.1790 level in the short-term horizon.

Key Quotes

24-hour view: “Expectation for EUR to ‘ease off’ yesterday was wrong as it broke briefly above last week’s 1.1721 peak. Upward pressure has waned quickly with the subsequent sharp and rapid pullback from a high of 1.1724. The current movement is viewed as part of a consolidation phase and EUR is expected to trade sideways for today, likely between 1.1640 and 1.1710″.

Next 1-3 weeks: “EUR touched a 3-week high of 1.1724 yesterday before easing off and ended the day on a soft note (NY close of 1.1665, -0.15%). While we continue see chance for EUR to move towards the major 1.1790 resistance, short-term momentum is ‘struggling’ and EUR has to move and stay above 1.1700 within these 1 to 2 days or the prospect for further strength would diminish quickly. On the downside, the ‘key support’ remains unchanged at 1.1605 even though a break of 1.1640 would serve as an early indication that a short-term top is in place”.