The pair’s stance remains neutral while a test of the sub-1.1200 zone still remains on the cards in the short-term horizon.
Key Quotes
24-hour view: “After dropping sharply on Monday, EUR staged a surprisingly rapid and robust recovery yesterday. The rebound appears to be running ahead of itself but there is scope for a test of the strong 1.1350 level first before the current advance should ease off (next resistance is at 1.1380). On the downside, support is at 1.1270 followed by 1.1240. Yesterday’s low of 1.1213 is expected to be ‘safe’ for now”.
Next 1-3 weeks: “The strong support indicated at 1.1200 yesterday was unthreatened as EUR staged a surprisingly rapid and robust rebound (low has been 1.1214). As long as the ‘key resistance’ at 1.1350 (no change in level from yesterday) is intact, we would not rule out a break of 1.1200 just yet. However, after yesterday’s recovery, the prospect for such a scenario has diminished. Looking forward, a break of 1.1350 would not change the current neutral outlook but suggest EUR has found a short-term bottom near 1.1215 and would then likely to trade sideways to slightly higher (within an overall broad range)”.
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