FX Strategists at UOB Group remain neutral on the pair, expected to navigate between 1.1140 and 1.1265 in the next weeks.
“The target indicated at 1.1105/10 last Friday was not reached as EUR rebounded swiftly from a low of 1.1137. The strong recovery suggests that a short-term low is in place. That said, the up-move appears to be running ahead of itself and a sustained move above 1.1235 is not expected (next resistance is at 1.1265). Support is at 1.1160 followed by the low near 1.1135/40 (which is not expected to come into the picture for today)”.
“We indicated last Friday that EUR is expected to stay under pressure unless it can move and stay above 1.1210. The unexpected rapid rebound just edged above 1.1210 at the time of writing (high of 1.1212) and the downward pressure has eased. That said, the outlook for EUR is still deemed as neutral but this pair is more likely to trade sideways between 1.1140 and 1.1265 for now (instead of extending lower to 1.1105/10 as previously expected). Looking further ahead, the direction of the next sustained move is unclear and only a break of 1.1105 or 1.1300 would give us a clearer indication”.
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