EUR/USD bearish below 1.1680 – UOB

In view of FX Strategists at UOB Group, the outlook on the pair stays neutral as long as 1.1680 is not cleared on a daily close.

Key Quotes

24-hour view: “EUR edged below the strong support highlighted at 1.1685/90 yesterday (low of 1.1680) before staging a robust and rapid rebound. The recovery appears to be running ahead of itself and while a move above the overnight high of 1.1778 would not be surprising, the next resistance at 1.1810 is unlikely to yield so easily. Support is at 1.1740 followed by 1.1710. The 1.1680 low is unlikely to come into the picture for now”.

Next 1-3 weeks: ” While EUR touched a low of 1.1680 yesterday, it rebounded strongly and quickly to end the day well above this level. As highlighted, only a NY closing below 1.0680 would indicate that EUR has moved into a bearish phase. This scenario is not ruled out just yet even though the odds for such a move have diminished considerably. Only a move back above 1.1810 would suggest that the risk of a deeper down-move has eased”.