EUR/USD: Limited rebound inside broad range – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) strategists Quek Ser Leang and Lee Sue Ann keep a neutral stance on EUR/USD after Monday’s gap lower and subsequent recovery. They see scope for a further rebound but expects gains to be capped near 1.1805, with 1.1840 as major resistance. Over the next 1–3 weeks, EUR/USD is projected to trade between 1.1665 and 1.1840, with upside momentum still tentative.

Euro-Dollar rebound seen as constrained

"24-HOUR VIEW: After EUR gapped lower on the open yesterday, we highlighted that “while there is scope for EUR to weaken further, the sharp drop appears to be overextended, and any decline is expected to face firm support at 1.1715.” Our view did not materialise as EUR rebounded from 1.1726 to 1.1790 before closing at 1.1787 (+0.21%). While EUR could rebound further, given that there is no clear increase in upward momentum, any advance is likely limited to a test of 1.1805. We do not expect the major resistance at 1.1840 to come under threat. Support is at 1.1760; a breach of 1.1740 would indicate that the current mild upward pressure has faded."

"1-3 WEEKS VIEW: Yesterday (20 Apr, spot at 1.1750), we revised our view from positive to neutral. We indicated that EUR “is likely to trade in a range for the time being, probably between 1.1665 and 1.1840.” Our view remains unchanged. "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

FXStreet

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