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In view of FX Strategists at UOB Group, spot stays neutral for the time being and it is likely to remain sidelined between 1.1720 and 1.1785.

Key Quotes

24-hour view: “We highlighted the improvement in upward momentum yesterday but were of the view that “EUR does not appear to be ready to tackle the 1.1790 resistance”. EUR subsequent touched an overnight high of 1.1790 before easing off quickly. Upward momentum has eased with the rapid pull-back and the risk for a clear break above 1.1790 is not high. From here, EUR has likely moved into a consolidation phase and is expected to trade sideways, likely between 1.1720 and 1.1785″.

Next 1-3 week: “We highlighted yesterday that the outlook for EUR is ‘positive’ and were of the view that a “break of 1.1790 could lead to rapid rise to 1.1850″. The 1.1790 resistance was subsequently ‘tested’ but held (high of 1.1790 during NY hours). From here, it is too early to rule out another attempt to crack 1.1790 and only a move back below the ‘key support’ at 1.1680 (level previously at 1.1665) would indicate that a temporary top is in place. That said, as highlighted yesterday, 1.1850 is acting as a major resistance and is unlikely to yield so easily”.