EUR/USD neutral near term, likely between 1.1180 and 1.1235 – UOB

FX Strategists at UOB Group remain neutral on the pair in the short term, expecting it to navigate within 1.1180 and 1.1235 in the next weeks.

Key Quotes

“The ‘pull-back target’ of 1.1175 indicated yesterday was not met as EUR recovered quickly after touching a low of 1.1183. The subsequent choppy price action has resulted in a mixed outlook and this pair is expected to trade sideways for now. Expected range for today; 1.1180/1.1235. That said, a clear break out the range could lead to a rapid move. The next support and resistance are at 1.1130 and 1.1270 respectively”.

“Despite the recent lackluster price action, we still think there is room for the current pull-back in EUR to extend lower. However, the rising trend-line support has moved higher with time and is currently sitting at 1.1130. This is a rather strong support but a break of this level would increase the odds of a move below the 1.1105/10 the low seen in late May. Overall, EUR is expected to stay under pressure unless it can reclaim 1.1265/70. On a shorter-term note, 1.1235 is already a strong resistance”.