FX Strategists at UOB Group stays neutral on the pair while noted that strong support emerges in the 1.1570 region.
Key Quotes
24-hour view: “Instead of ‘extending lower’ to 1.1600 (as expected last Friday), EUR rebounded quickly after touching a low of 1.1619. The recovery lacks momentum and is viewed as part of a consolidation phase. From here, EUR is expected to trade sideways, likely within a 1.1630/1.1690 range”.
Next 1-3 weeks: “ EUR traded within a tight 45 pips range last Friday (narrowest 1-day range since mid-April) and the quiet consolidation offers no further clues. We continue to hold a slightly negative view in EUR but as highlighted in recent updates, any weakness is expected to encounter solid support at 1.1570. While a dip below 1.1570 is not ruled out, we apportion low odds for break below the next support at 1.1505. Meanwhile, only a break back above 1.1720 would indicate that the current mild downward pressure has eased”.
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