EUR/USD neutral, could still test 1.1930 – UOB

According to FX Strategists at UOB Group, spot could still reach the 1.1930 area in the next weeks.

Key Quotes

24-hour view: “While we expected a lower EUR yesterday, we were of the view that the 1.1760 support “is unlikely to yield so easily”. The anticipated weakness only managed to touch 1.1779. The undertone is still on the weak side and barring a move back above 1.1835, a test of 1.1760 still seems likely before a more sustained recovery can be expected (next support is at 1.1730)”.

Next 1-3 weeks: “The rapid and sharp pull-back in EUR last Friday came as a surprise. However, as highlighted in recent updates, as long as the key short-term support at 1.1760 support is intact, there is room for the current recovery to extend higher to 1.1930. That said, EUR has to reclaim 1.1880 within these 1 to 2 days or the odds for further EUR strength would diminish quickly. A move back below 1.1760 would suggest that the mild upward pressure has eased and EUR is then expected to trade sideways”.