EUR/USD neutral, could re-test 1.1820 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group remain neutral on the pair, allowing a potential test of the 1.1820 area.

Key Quotes

24-hour view: “In line with expectation, EUR extended its decline to 1.1845/50 but the down-move was checked by the strong 1.1820 support (low has been 1.1836). The strong rebound from the low however, came as a surprise. The recovery appears incomplete and further EUR strength towards 1.1955 seems likely. The next level at 1.1995 is a major level and is unlikely to be challenged. Support is at 1.1885 followed by 1.1855. The 1.1838 low is likely ‘safe’ for now”.

Next 1-3 weeks: “We just turned neutral yesterday and held the view that EUR is under “immediate downward pressure towards 1.1820”. EUR dipped to a low of 1.1836 before rebounding strongly. Despite the recovery, the undertone is still weak and there is still a good chance that we may see another attempt to move towards 1.1820. However, as highlighted yesterday, a sustained move below the next support at 1.1770 is not expected. On the upside, only a move back above 1.1995 would indicate that the downward pressure has eased”.

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.

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