EUR/USD neutral, within a 1.1730/1.1885 range – UOB

FX Strategists at UOB Group remain neutral on the pair, expecting it to gravitate between 1.1730 and 1.1885 in the near term.

Key Quotes

24-hour view: “Instead of extending its gain above the Monday’s high of 1.1828, EUR fell sharply from a high of 1.1824 (low has been 1.1743). While downward momentum is not strong, the pull-back has room to extend lower but 1.1730 is a strong support and a sustained move below this level seems unlikely for now (next support is at 1.1700). Resistance is at 1.1790 followed by 1.1810. The 1.1828 top is not expected to come into the picture, at least not for today”.

Next 1-3 weeks: “The rapid swing lower after the sharp rise on Monday (that hit a high of 1.1828) came as a surprise. For now, we continue to view the price action as part of a 1.1730/1.1885 consolidation range. However, a clear break below 1.1730 would suggest that the short-term pressure has shifted to the downside again even though any weakness is expected to encounter solid support at 1.1700 followed by the month-to-date low near 1.1660”.