EUR/USD neutral, rallies should be capped around 1.1835 – UOB

FX Strategists at UOB Group remain neutral on the pair in the near term, adding that occasional up ticks should find resistance in the 1.1835 level.

Key Quotes

24-hour view: “Expectation for sideway trading was incorrect as EUR rose to hit a high of 1.1818. The strong daily closing suggests further upward pressure even though 1.1835 is expected to offer solid resistance ahead of another strong level at 1.1860. On the downside, support is at 1.1780 but the more significant level is closer to 1.1750”.

Next 1-3 weeks: “EUR edged higher yesterday and touched a high of 1.1818. As highlighted in recent updates, only a clear move above 1.1835 would indicate that the current negative undertone has eased. Until then, the immediate bias is still on the downside but the prospect for a ‘drift lower to 1.1665/70’ would diminish further unless EUR can move and stay below 1.1750 within these 1 to 2 days. Looking further ahead, a clear break above 1.1835 is unlikely to shift current neutral outlook to bullish (more likely to indicate that EUR has moved into a higher consolidation range)”.