In view of FX Strategists at UOB Group, the pair keeps the neutral bias unchanged in the near term horizon.
Key Quotes
24-hour view: “The anticipated extension higher in EUR fell short of expectation as it eased off quickly after touching a high of 1.1750 (the strong 1.1760 resistance was unchallenged). Upward pressure has eased and the current movement is deemed as part of a consolidation phase. In other words, EUR is expected to trade sideways from here, likely within a 1.1655/1.1725 range”.
Next 1-3 weeks: “There is not much to add as EUR eased off without testing the strong 1.1760 resistance yesterday (high of 1.1750). As highlighted yesterday, while the outlook for EUR remains as neutral, improving momentum indicators that it has moved into a higher 1.1640/1.1850 range (from 1.1590/1.1760 previously). Looking further out, even if EUR were to move back below the bottom of the expected range at 1.1640, it will not change the current neutral outlook but indicate further consolidation within a relatively broad range”.
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