EUR/USD underpinned by 1.1750 – UOB

FX Strategists at UOB Group stick to the neutral stance on the pair in the near term.

Key Quotes

24-hour view: “Instead of extending its gains, EUR eased off quickly and the built-up in upward momentum from last Friday has eased. The rapid and sharp pull-back has room to extend further but at this stage, a sustained move below 1.1750 seems unlikely (next support is at 1.1730). On the upside, resistance is at 1.1805 and a move back above yesterday’s peak near 1.1840 is not expected (at least not for today)”.

Next 1-3 weeks: “There is not much to add as we continue to expect EUR to stay underpinned as long as 1.1750 is intact. However, as highlighted yesterday, upward momentum is not strong and the month-to-date high near 1.1910 is unlikely to yield so easily. On a shorter-term note, 1.1870 is already a strong resistance. Looking further ahead, a break back below 1.1750 would indicate a retest of last week’s low near 1.1685/90. Overall, this pair does not appear to be going anywhere far, anytime soon (neutral phase that started last Monday may last for a while more)”.