EUR/USD looking to stabilize – UOB
FX Strategists at UOB Group noted the pair’s potential for extra pullbacks appears diminished in the near term.
Key Quotes
24-hour view: “We expected a higher EUR yesterday but were of the view that a clear break above 1.2315 is unlikely. However, EUR managed to hit a high of 1.2330 before ending the day on a solid note. The undertone has improved further and a test of the next resistance at 1.2350 seems likely before a pullback can be expected (prospect for further extension to 1.2380 is not high). Only a move back below 1.2280 would indicate that the immediate upward pressure has eased. Minor support is at 1.2300”.
Next 1-3 weeks: “In recent updates, we expected EUR to “remain on the back foot unless it can move above 1.2350”. The recent weak undertone is beginning to stabilize as EUR staged a robust recovery from last Friday’s 1.2212 low. The odds for downward extension towards last month’s 1.2153 low have diminished and a while a move above 1.2350 would not change the neutral outlook, it would indicate that EUR has moved into a higher sideway consolidation range”.
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
