EUR/USD still neutral, looks to 1.1745 – UOB

The pair’s outlook stays neutral while it is expected to test the 1.1745 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We were of the view yesterday that there is “still scope for another push higher to 1.1715 before a pull-back can be expected”. We added, “a break of the major 1.1745/50 resistance would come as a surprise”. The major resistance was unchallenged as EUR retreated after touching an overnight high of 1.1733. Upward pressure has eased with the pullback from the high and this coupled with the still overbought conditions suggests that EUR has likely moved into a consolidation phase. In other words, we expect EUR to trade sideways for today, likely between 1.1655 and 1.1725”.

Next 1-3 weeks: “EUR extended its gain to an overnight high of 1.1733. As highlighted, there is still scope for further EUR strength and the focus is at 1.1745. While a break of this level would not be surprising, we continue to see low odds for a sustained move above the next resistance at 1.1790. That said, overbought shorter-term indicators could lead to 1 to 2 days of consolidation first but as long as the ‘key support’ at 1.1590 is intact (no change in level), it is too early to expect a short-term top”.