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According to FX Strategists at UOB Group, the pair’s outlook remains bearish and further weakness is not ruled out.

Key Quotes

24-hour view: “In line with expectation, EUR traded sideways yesterday albeit at a narrower range than anticipated. Most indicators remain ‘flat’ and further sideway trading is expected for today, likely within a 1.1765/1.1825 range”.

Next 1-3 weeks: “We highlighted yesterday (16 May, 1.1830) that the “immediate pressure is on the downside” and added, “further weakness to 1.1750 would not be surprising”. EUR subsequently hit a low of 1.1761 before rebounding. The price action reinforces our view wherein while the near-term outlook for EUR is negative, any weakness is unlikely to have enough momentum to move below last December’s low of 1.1715 (1.1750 is already a solid support). On the upside, only a move back above the ‘key resistance’ at 1.1900 (level adjusted lower from 1.1940) would indicate that the current downward pressure has eased”.