EUR/USD keeps the neutral bias, eyes 1.1660 – UOB

The pair’s stance remains neutral for the time being, allowing a probable test of the 1.1660 region, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of trading sideways, EUR dropped sharply to an overnight low of 1.1728. The weakness appears to have room to extend further and a break of last week’s low of 1.1715 could lead to further rapid decline towards the major support at 1.1660. On the upside, only a move back above 1.1795 would indicate that the current weakness has stabilized. Minor resistance is at 1.1765”.

Next 1-3 weeks: “There is not much to add to the update from yesterday. We continue to anticipate EUR to extend its recent weakness towards 1.1660. While the odds for a clear break below this level are not high at this stage, they would improve quickly in the coming days unless EUR can reclaim the key resistance at 1.1820 (adjusted from 1.1850). The next support below 1.1660 is at 1.1615”.