EUR/USD neutral near term, potential test of 1.1660 – UOB

FX Strategists at UOB Group keep the neutral stance on the pair, allowing for a probable visit to the 1.1660 area in the next 1-3 weeks.

Key Quotes

24-hours view: “EUR traded in a range of 1.1719/1.1803 yesterday, slightly wider than our expected 1.1720/1.1790 consolidation range. The daily closing is on the positive side and from here, there is scope for a move higher to test the 1.1820 resistance (the next resistance at 1.1850 is unlikely to be challenged). Support is at 1.1750 followed by 1.1720”.

Next 1-3 weeks: “After 3 consecutive days of losses, EUR rebounded to close higher yesterday. Despite the recovery, the undertone is still weak and as highlighted in the recent updates, only a move back above 1.1850 would indicate that the current weakness has stabilized. Until then, there is still scope for a move lower towards 1.1660 (even though a sustained move below this level is not expected)”.