EUR/USD now seen within 1.1840-1.2000 – UOB

FX Strategists at UOB Group noted EUR/USD is expected to navigate between the 1.1840-1.2000 range in the next weeks.

Key Quotes

24-hour view: “Our expectation for EUR to ‘continue to advance’ was incorrect as it fell sharply from 1.1988 (low of 1.1905 during NY hours). While downward momentum has not improved by much, the decline in EUR could dip below 1.1900 first before stabilizing. The next support at 1.1880 is unlikely to come under threat. Resistance is at 1.1940 followed by 1.1960.”

Next 1-3 weeks: “We highlighted yesterday that ‘risk has shifted slightly to the upside but EUR has to close above 1.2030 before a sustained advance can be expected’. We added, ‘the prospect for such a move is not high but it would continue to increase as long as EUR does not move below 1.1900 within these few days’. We did not anticipate the subsequent swift decline to 1.1905 during NY hours. While 1.1900 is still intact, the mild build-up in momentum has fizzled out. In other words, the risk for a higher EUR has dissipated and EUR is likely to trade between 1.1840 and 1.2000 for now.”