EUR/USD neutral between 1.1860/1.2060 – UOB

FX Strategists at UOB Group keep the neutral perspective on the pair, likely to gravitate between 1.1860 and 1.2060 in the next 1-3 weeks.

Key Quotes

24-hour view: “Instead of trading sideways as expected, EUR took out the 1.1995 resistance to hit a high of 1.2006 (before closing on a solid note). The undertone is still positive and further EUR strength towards 1.2030 would not be surprising. At this stage, a sustained move above this level seems unlikely (next resistance is at 1.2060). Only a move back below 1.1950 would indicate that the immediate upward pressure has eased (minor support is at 1.1975)”.

Next 1-3 weeks: “The recent weak undertone has eased as EUR moved above 1.1995 yesterday. However, the neutral phase that started about a week ago is still intact but EUR is more likely to trade sideways at these higher levels instead of testing the 1.1820 support (as expected previously). In other words, sideway trading is expected from here, likely within a 1.1860/1.2060 range. Looking further ahead, EUR has to move clearly above the month-to-date high near 1.2090/95 in order to indicate the start of a fresh bullish phase”.