EUR/USD remains side-lined within 1.1720-1.880 – UOB

In opinion of FX Strategists at UOB Group, EUR/USD is still seen navigating the 1.1720-1.1880 range in the next weeks.

Key Quotes

24-hour view: “Our view that EUR ‘is under mild downward pressure’ was wrong as it rebounded to a high of 1.1819 before trading mostly sideways for the rest of the sessions. The underlying tone has firmed somewhat and this could lead to EUR edging upwards but chance for a break of 1.1850 is not high (minor resistance is at 1.1830). Support is at 1.1785 followed by 1.1760.”

Next 1-3 weeks: “Two days on Wednesday (11 Nov, spot at 1.1815), we highlighted that the current movement in EUR ‘is viewed as part of a consolidation phase’. We added, ‘the slightly soft underlying tone suggests EUR is likely to edge lower towards the bottom of the expected 1.1720/1.1880 range first’. EUR subsequently dropped to 1.1744 before rebounding. There is no change in our view for now and only a clear break of the 1.1720/1.1880 range would indicate the start of a more sustained directional price action.”