FX Strategists at UOB Group noted EUR/USD is expected to navigate within the 1.2050-1.2200 range in the next weeks.
24-hour view: “We expected EUR to strengthen yesterday but we were of the view ‘a break of last week’s peak near 1.2170 is not expected’. EUR subsequently rose to an overnight high of 1.2169. Upward momentum has improved and further gains appears likely but overbought conditions could ‘limit’ gains to a test of 1.2200. In other words, a sustained advance above 1.2200 is not expected (next resistance is at 1.2230). Support is at 1.2140 followed by 1.2115.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (22 Feb, spot at 1.2125). As highlighted, the outlook is mixed and EUR could trade between 1.2050 and 1.2200 for a period of time. Shorter-term upward momentum has improved somewhat but EUR has to close above 1.2200 before a sustained advance can be expected (next resistance is at 1.2230). At this stage, the prospect for such a scenario is not high but it would remain intact as long as 1.2080 is not taken out within these few days.”