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In opinion of FX Strategists at UOB Group, the pair could test the 1.1500 area although a deeper pullback appears unlikely in the short-term horizon.

Key Quotes

24-hour view: “We highlighted yesterday that EUR could dip to 1.1550 but “a break of the 1.1525/30 support seems unlikely”. EUR subsequently dipped and touched a low of 1.1535 before rebounding quickly. Indicators are turning ‘flat’ which suggests further range trading for now. Expected range for today; 1.1540/1.1615″.

Next 1-3 weeks: “As highlighted yesterday, despite the recent weakness, we are not convinced that EUR has reentered a bearish phase. However, a dip below the year-to-date low of 1.1505 is not ruled out but at this stage, we do not expect any weakness to be sustained (1.1450 is the next strong support). All in, EUR is likely to stay under pressure until it can reclaim the ‘key resistance’ at 1.1680 (level previously at 1.1710)”.