EUR/USD stays neutral, eyes 1.1820 – UOB

FX Strategists at UOB Group expects the pair to remain neutral in the near term, allowing the chance of a test of the 1.1820 area.

Key Quotes

24-hour view: “EUR exceeded the target highlighted at 1.1955 last Friday as it hit a high of 1.1986 (the latter level was just below the major resistance at 1.1995). Upward pressure appears to have eased with the quick pull-back from the high and EUR has likely moved into a consolidation phase. In other words, sideways trading is expected from here, likely within a range of 1.1900/1.1985”.

Next 1-3 weeks: “EUR hit a high of 1.1985 last Friday, holding below the key short-term resistance of 1.1995. As highlighted in recent updates, the current weak undertone is deemed as intact unless there is a move above 1.1995. In other words, another leg lower towards 1.1820 is not ruled out just yet but the odds for such a move have diminished”.