EUR/USD is still seen between 1.1750 and 1.1920 in the near-term.
24-hour view: “We noted yesterday that ‘upward momentum has improved a tad’ and held the view that EUR ‘could continue to edge upwards to 1.1900’. We highlighted that ‘a break of the major resistance at 1.1920 is unlikely’. While EUR edged higher as expected (high of 1.1899), we did not quite anticipate the swift decline from the high (overnight low of 1.1838). The rapid pullback has room to extend lower but any weakness from here is viewed as part of a lower trading range of 1.1815/1.1880. In other words, a sustained decline below 1.1815 is unlikely.”
Next 1-3 weeks: “There is not much to add to our latest narrative from last Friday (11 Sep, spot at 1.1825). As highlighted, EUR is likely in a consolidation phase and could trade between 1.1750 and 1.1920 for a while. Looking forward, when EUR moves out of this range, there is another solid support and resistance at 1.1680 and 1.2020 respectively. To look at it another way, the current mixed momentum coupled with the presence of solid support and resistance levels suggest EUR may not be able to embark on a sustained directional move anytime soon.”