EUR/USD further decline appears unlikely – UOB

FX Strategists at UOB Group remain neutral on the pair and noted that further downside risks appear diminished.

Key Quotes

24-hour view: “EUR registered a narrow 40 pips range for the whole yesterday before ending the day largely unchanged. Neutral indicators continue to suggest further range trading for now, likely between 1.1710 and 1.1760”.

Next 1-3 weeks: “While a clear break below 1.1660 is not ruled out, the recent downward pressure that resulted in low of 1.1667 last Friday is beginning to show signs of waning. From here, a move above 1.1780 would suggest that 1.1667 is short-term low and that EUR has moved into a consolidation phase. Until then, EUR could stage another leg lower to take out 1.1660 but this has to happen within these 1 to 2 days or the prospect for such a move would diminish quickly”.