EUR/USD seen testing 1.1665/70 – UOB

The pair keeps the neutral bias and is expected to slip back to the 1.1665/70 band in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The sharp drop from last Friday’s 1.1858 high appears incomplete and further weakness seems likely for today. That said, last week’s low near 1.1730 is acting as a major support and this level is unlikely to yield so easily (next support is at 1.1700). Resistance is at 1.1790 but only a move back above 1.1820 would indicate the current weakness has stabilized”.

Next 1-3 weeks: “EUR has been trading within a 1.1730/1.1880 range for about 2 weeks now. Despite the consolidation, the undertone has weakened somewhat and the immediate pressure is on the downside. That said, downward momentum is patchy at best and any weakness is expected to be gradual and is likely limited to a test of the 1.1665/70 low seen earlier this month (minor support is at 1.1730). Overall, this pair is expected to stay under pressure unless it can reclaim the strong 1.1860 resistance (minor resistance is at 1.1820)”.