EUR/USD neutral within 1.1820/1.1980 – UOB

Spot is expected to extend the sideline theme in the next 1-3 weeks, likely between 1.1820 and 1.1980.

Key Quotes

24-hour view: “EUR briefly touched a high of 1.1939 before easing off. Improving upward momentum suggests further upside pressure but solid resistance can be expected near 1.1950. The major resistance at 1.1980 is unlikely to be seriously challenged. On the downside, support is at 1.1890 followed by 1.1865. The latter level is likely strong enough to hold for today”.

Next 1-3 weeks: “There is not much to add as EUR continues to trade sideways. While the undertone has improved somewhat, it is too early to expect a resumption of the recent bullish phase. That said, the immediate bias is tilted on the upside but the strong resistance at 1.1980 is unlikely to yield so easily. In other words, we continue to expect EUR to trade sideways albeit at a narrower range of 1.1820/1.1980 instead of the 1.1770/1.1980 expected previously. Only a clear break out of this range would indicate the start of a directional move”.