EUR/USD pullback could test 1.1770 – UOB

In view of FX Strategists at UOB Group, the pair’s neutral stance remains unchanged in the near term, allowing a visit to the 1.1770 region.

Key Quotes

24-hour view: “While the rapid and deep plunge from a high of 1.2031 appears to be running ahead of itself, there is no sign of stabilization just yet and further weakness seems likely. A move below the overnight low of 1.1860 could lead to a rapid drop towards last week’s low near 1.1835, possibly extending to 1.1820. On the upside, only a move back above 1.1950 would indicate that the current weakness has stabilized. Minor resistance is at 1.1905”.

Next 1-3 weeks: “EUR registered an ‘outside day’ before closing on a weak note. While the neutral phase that started one week ago is still in place, the immediate pressure has shifted to the downside again. From here, a move to 1.1770 would not be surprising but at this stage, it is unclear if EUR can move clearly below this level. Overall, this pair is expected to stay under pressure unless it can reclaim 1.1980 in the coming days”.