EUR/USD corrective bounce could reach 1.19 – UOB

In view of FX Strategists at UOB Group, there is still room for a potential test of the 1.1900 handle in the next weeks.

Key Quotes

24-hour view: “In line with expectation, EUR traded sideways yesterday albeit within a narrower range than anticipated. The underlying tone has weakened somewhat and the immediate bias is tilted to the downside but at this stage, any decline is unlikely to have enough momentum to move clearly below last Friday’s low near 1.1725 (minor support is at 1.1750). On the upside, resistance is at 1.1800 followed by 1.1820”.

Next 1-3 weeks: “After closing higher for four consecutive days, EUR slipped last Friday and closed -0.26% lower at 1.1766. Despite the ‘weak’ price action, we continue to detect a positive undertone and are not ruling out the possibility that EUR could stage a stronger corrective rebound to 1.1900. Only a break of the ‘key support’ at 1.1690 (level remains the same) would indicate the current positive bias has eased”.