EUR/USD seen sidelined in the very near term – UOB

Spot is likely to navigate within 1.1720 and 1.1780 in the very near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While EUR broke the 1.1715 support as expected, the ensuing decline did not challenge the major level of 1.1660. The sharp rebound from a low of 1.1694 suggests that a temporary bottom is in place. From here, EUR has likely moved into a consolidation phase and is expected to trade sideways between 1.1720 and 1.1780”.

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”.