EUR/USD neutral, points to a test of 1.1680 – UOB

EUR/USD could slip back towards the 1.1680 area in the next 1-3 weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “In line with expectation, EUR traded sideways yesterday albeit at a narrower range than anticipated. The consolidation phase appears incomplete and further range trading is expected, likely between 1.1760 and 1.1830”.

Next 1-3 weeks: “We just shifted to a neutral stance yesterday and there is no change to the view. EUR has likely made a short-term top at 1.1909 last week and the current movement is viewed as the early stages of a correction/consolidation phase. That said, the immediate bias is for a probe lower towards the bottom of the expected 1.1680/1.1880 consolidation range. At this stage, a clear break below 1.1680 is not expected”.