It is likely that the EUR / USD continue to trade within the 1.1720-1.1880 range for the next few weeks, noted the currency strategists of UOB Group.
24 hour perspective: “We expected the EUR to trade in a lower 1.1775 / 1.1855 range yesterday, but it broke down at 1.1775 and fell to 1.1744 before bouncing. The downside momentum has improved, if only slightly. While the bias is sloping downward, main support at 1.1720 unlikely to enter the picture (The low at 1.744 acts as a minor support). On the upside, a breakout of 1.1815 would indicate that the current slight downward pressure has eased (minor resistance is at 1.1800) ”.
Next 1-3 weeks: “The EUR fell a couple of pips below our strong support of 1.1780 yesterday (low at 1.1778) before recovering to end the day little changed at 1.1814 (+ 0.01%). The price action was not surprising, as we highlighted yesterday that the odds of further EUR strength have diminished. The breakout of the strong support level indicates that the euro is not ready to move towards 1.2011 (We previously held the view that the EUR had to close above 1.1915 before a move to 1.2011 could be expected). The current move is seen as the early stages of a consolidation phase, although the slightly subdued underlying tone suggests that it is likely to move down towards the lower part of the 1.1720 / 1.1880 expected range first.
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Credits: Forex Street
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