EUR/USD rangebound near term – UOB

EUR/USD is likely to gravitate between 1.1830 and 1.2030 in the next 1-3 weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR exceeded the 1.1980 resistance and hit a high of 1.2004 last Friday. The subsequent sharp drop from the high appears to have scope to extend lower but any weakness is unlikely to threaten last week’s low near 1.1860 (1.1890 is already a strong support). On the upside, only a move back above 1.1975 would indicate that the current mild downward pressure has eased (minor resistance is at 1.1945)”.

Next 1-3 weeks: “The recent mild downward pressure has eased as EUR rebounded above 1.1980 last Friday (high of 1.2004). The choppy price action for the past couple of weeks has resulted in a mixed outlook. While the undertone appears to be on the weak side, short-term periods of weaknesses have been brief and limited. Conversely, the 1.2092 peak seen earlier this month is acting as a solid resistance and is unlikely to be challenged anytime soon. Overall, we continue to hold a neutral view and expect EUR to trade listlessly within a 1.1830/1.2030 range”.