The pair’s outlook remains neutral with the likelihood of a visit to 1.2165 still on the cards, suggested FX Strategists at UOB Group.
24-hour view: “EUR traded between 1.2233 and 1.2297 yesterday, relatively close to our expected 1.2220/1.2300 consolidation range. The solid daily closing in NY suggests further upward pressure towards 1.2330. Further up, 1.2360 is a solid resistance and this level is unlikely to be challenged, at least not for today. Support is at 1.2250 followed by 1.2220”.
Next 1-3 weeks: “EUR ended the day largely unchanged on Friday as it failed for the second time to move clearly below the short-term 1.2200 support (low has been 1.2204). While the recent weakness has stabilized somewhat, it is too early to expect a sustained recovery. As highlighted in the Chart of the Day update last Thursday (08 Feb, spot 1.2270), the current correction in EUR could extend deeper towards the 1.2165 in the coming days. Overall, EUR is expected to continue to stay under pressure until it can reclaim 1.2360 (key resistance previously at 1.2410)”.
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