EUR/USD still neutral, targets 1.1680 – UOB

FX Strategists at UOB Group remain neutral on the pair, expecting it to slip back to the 1.1680 area in the next weeks.

Key Quotes

24-hour view: “EUR dived to a low of 1.1687 yesterday but the down-move was short-lived. The strong rebound suggests that a short-term low is in place. The current movement is viewed as the early stages of a consolidation phase even though the immediate bias is for a probe higher towards the top of the expected 1.1730/1.1795 sideway-trading range”.

Next 1-3 weeks: “When we shifted from a bullish to neutral stance on Monday, we held the view that the “the immediate bias is for a probe lower towards 1.1680”. In line with our expectation, EUR dipped to a low of 1.1687 yesterday before staging a strong and rapid rebound. Despite the recovery, the undertone is still negative and another attempt to towards 1.1680 is not ruled out. At this stage, a sustained move below this level is not expected (there is another strong support at 1.1640). On the upside, only a move back above 1.1830 would indicate that the current mild downward pressure has eased”.