In opinion of FX Strategists at UOB Group, the pair’s stance remains neutral with the possibility of testing 1.1930 in the next weeks.
24-hour view: “Our expectation for range trading was wrong as EUR surged to hit a high of 1.1825. The rapid advance appears incomplete and further EUR strength seems likely from here. That said, 1.1865 is a rather strong resistance and this level is unlikely to yield so easily (minor resistance is at 1.1835). Support is at 1.1780 followed by 1.1750. The latter level is expected to be strong enough to hold any intraday pullback”.
Next 1-3 weeks: “While we highlighted yesterday that the “risk of a sustained down-move has eased”, the rapid and sharp rise that easily took out 1.1780 came a surprise. The immediate pressure has shifted to the upside and the current recovery has scope to extend further towards 1.1930. At this stage, a sustained move above this level seems unlikely. Overall, EUR is expected to stay underpinned in the coming days unless there is a move back below 1.1720 (key short-term support). On a shorter-term note, 1.1750 is already a rather strong support”.
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