EUR/USD probable test of 1.1770 – UOB

The pair could slip back towards the 1.1770 area, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for a move towards 1.1835 was wrong as EUR rebounded strongly after touching a low of 1.1864. A temporary low is likely in place and while the rebound could extend above the overnight high of 1.1953, the next resistance is at 1.1980 is unlikely to be seriously threatened. Support is at 1.1915 followed by 1.1890. The 1.1864 low is like ‘safe’, at least for today”.

Next 1-3 weeks: “EUR staged a strong rebound but as highlighted yesterday, as long as 1.1980 is not taken out, the immediate pressure remains on the downside, However, after the strong recovery, the odds for further extension towards 1.1770 have diminished. In the meanwhile, EUR could consolidate for a few days before making another attempt to move lower”.