EUR/USD supported while above 1.1750 – UOB

FX Strategists at UOB Group remain neutral on the pair, adding that it stays well underpinned as long as it trades above 1.1750 in the short term.

Key Quotes

24-hour view: “The anticipated rebound in EUR exceeded our expectation by taking out the strong 1.1800 resistance to hit a high of 1.1846 last Friday. Despite the pullback from the high, the undertone is still positive and the immediate pressure is on the upside. That said, 1.1870 is another strong resistance and at this stage, a clear break above this level seems unlikely (next resistance is at the month-to-date high near 1.1910). Support is at 1.1785 followed by the stronger level near 1.1750”.

Next 1-3 weeks: “As indicated last Friday (11 Aug), a move back above 1.1830 would indicate that the mild downward pressure has eased. However, the pace and extent of the rebound have been more robust than expected (high of 1.1846 last Friday) and from here, EUR is expected to stay underpinned as long as it can hold above 1.1750. That said, upward momentum is not strong and any up-move is expected to struggle to move above the month-to-date high near 1.1910. On a shorter-term note, 1.1870 is already a strong resistance”.