EUR/USD a test/breakout of 1.1750 stays on the cards – UOB

In opinion of FX Strategists at UOB Group, the pair’s outlook stays neutral and could attempt a move to the mid-1.1700s in the near term.

Key Quotes

24-hour view: “Expectation for EUR to extend its gain to 1.1750 was wrong as it dropped sharply after failing to break above the minor resistance at 1.1720 (high has been 1.1720). The decline appears to be running ahead of itself and further sustained weakness is not expected. EUR is more likely to consolidate its loss and trade sideways (to slightly lower). Expected range for today; 1.1620/1.1685. The 1.1720 high is expected to be ‘safe’ for now”.

Next 1-3 weeks: “EUR edged above Monday’s 1.1713 high and touched 1.1720 before skidding to close lower for the first time in 3 days (NY close of 1.1645, -0.48%). Despite the relatively large drop, the undertone remains positive and we continue to see chance for a test if not a break of 1.1750. That said, this has to happen within these 1 to 2 days as a prolonged consolidation would lead to a rapid loss in momentum. Conversely, a break of the ‘key support’ at 1.1605 would indicate that the immediate upward pressure has eased”.