EUR/USD neutral, keeps the 1.1730/1.1885 range – UOB

The pair is seen sticking to the neutral stance for the time being, likely to gravitate within the 1.1730/1.1885 range in the next weeks.

Key Quotes

24-hour view: “While we were of the view that the improved undertone could lead to a stronger EUR, the ease of which the strong 1.1790 resistance was taken out came as a surprise. Despite the pullback from the overnight high of 1.1828, the still positive undertone suggests a test of last week’s peak near 1.1845. This is a rather strong resistance and is unlikely to yield so easily (next resistance is at the 1.1885). Support is at 1.1790 but only a move back below 1.1770 would indicate that the immediate upward pressure has eased”.

Next 1-3 weeks: “The ease of which the strong 1.1790 resistance was taken out was surprising. The break of this level has put paid to our anticipation for a deeper pullback in EUR (even though the ‘condition’ for a NY closing below 1.1680 was not met). From here, the outlook for EUR is still viewed as neutral but this pair has likely moved back into a consolidation phase. That said, the immediate bias is for a probe higher towards the top end of the expected 1.1730/1.1885 consolidation range”.