UOB Group’s FX Strategists now see EUR/USD navigating within the 1.2060-1.2230 range in the next weeks.
24-hour view: “We expected EUR to strengthen yesterday but we were of the view that ‘1.2230 is unlikely to come into the picture’. However, EUR soared to 1.2242 before selling-off sharply. The rapid decline has scope to extend lower but any weakness is likely limited to a test of 1.2100 (minor support is at 1.2125). Resistance is at 1.2185 followed by 1.2205.”
Next 1-3 weeks: “We highlighted yesterday (25 Feb, spot at 1.2165) that ‘shorter-term momentum has improved but EUR has to close above 1.2200 before a sustained advance can be expected’. EUR subsequently rose to 1.2242 before dropping sharply to end the day at 1.2176. The build-up in momentum has fizzled out and EUR is likely to trade between 1.2060 and 1.2230 for now.”