EUR/USD still neutral, room for a test of 1.1930 – UOB

In opinion of FX Strategists at UOB Group, spot could attempt a visit to the 1.1930 area in the next weeks.

Key Quotes

24-hour view: “EUR registered a range of 1.1803/1.1874 last Friday, relatively close to our expected sideway trading range of 1.1800/1.1870. However, the daily closing is on the weak side and the immediate bias is tilted to the downside. That said, downward momentum is patchy at best and the strong support at 1.1760 is unlikely to yield so easily (minor support at 1.1785). On the upside, only a move back above 1.1850 would indicate that the current mild downward pressure has eased”.

Next 1-3 weeks: “The rapid and sharp pull-back in EUR last Friday came as a surprise. However, as highlighted in recent updates, as long as the key short-term support at 1.1760 support is intact, there is room for the current recovery to extend higher to 1.1930. That said, EUR has to reclaim 1.1880 within these 1 to 2 days or the odds for further EUR strength would diminish quickly. A move back below 1.1760 would suggest that the mild upward pressure has eased and EUR is then expected to trade sideways”.