FX Strategists at UOB Group noted the outlook for EUR/USD remains tilted to the downside in the near-term, with the main focus on the 1.1975 level.
24-hour view: “Our view from yesterday that EUR could ‘test 1.2000 first before stabilizing’ was incorrect as it rebounded strongly from 1.2011. The current movement is viewed as part of a consolidation and EUR is expected to trade sideways for today, likely between 1.2030 and 1.2090.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (03 May, spot at 1.2030). As highlighted, the recent positive phase has run its course and the near-term bias is tilted to the downside. That said, EUR has to break the major support at 1.1975 before a more sustained (and sizeable) pullback can be expected. At this stage, the prospect for a break of 1.1975 is not high but it would increase unless EUR moves above 1.2105 within these few days.”
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