EUR/USD: Bias still tilted to the upside – UOB

FX Strategists at UOB Group believe EUR/USD could keep the rangebound theme between 1.0840 and 1.1200 in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that ‘upward pressure has dissipated’ and added, ‘the current weakness could extend lower to 1.0970 (next support is at 1.092)’. While our view was not wrong as EUR subsequently dropped to 1.0925, the sharp and strong rebound from the low was unexpected (EUR closed well above the low at 1.1029). The rapid recovery has scope to extend higher but for today, a clear break of 1.1110 appears unlikely (minor resistance is at 1.1065). Support is at 1.0975 followed by 1.0940. The 1.0925 low is likely ‘safe’ for today.”

Next 1-3 weeks: “There is not much to add to the update from last Friday (27 Mar, spot at 1.1050). As highlighted, while the immediate bias is tilted to the upside, any advance is viewed as part of a broad 1.0840/1.1200 range. The rapid retreat from 1.1149 yesterday reinforces our view and from here, unless EUR breaks below 1.0840, there is still chance for EUR to test the major resistance at 1.1200.”