The pair remains neutral although it is expected to trade in a higher range in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “EUR traded mostly sideways yesterday until late in NY session where it surged and took out the 1.1710 resistance (high of 1.1738). The subsequent strong daily close suggests further upward pressure even though 1.1760 is a major level and is expected to offer solid resistance. In view of the positive outlook, an intraday move above this level is not ruled but a clear break of the next resistance at 1.1790 would come as a surprise. Support is at 1.1700 followed by 1.1665″.
Next 1-3 weeks: “The price action in EUR over the past couple of days has been relatively muted and there is no further clue. From a longer-term perspective, the neutral phase that started in early June is still intact and we expect it to remain intact unless EUR can break clearly out of the June’s range of 1.1507/1.1851. In view of the recent lackluster price action, this is unlikely to happen any time soon. From a 1-3 weeks perspective, there is a slight upside bias even though any EUR strength is viewed as part of a higher 1.1640/1.1850 consolidation range and a sustained break above 1.1850 seems unlikely”.
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