EUR/USD could test 1.2370 very near term – UOB

FX Strategists at UOB Group noted the pair’s upside could attempt a test of 1.2370 in the very near term.

Key Quotes

24-hour view: “EUR traded within a range of 1.2289/1.2345 yesterday, narrower than our expected 1.2285/1.2355 consolidation range. The undertone has improved somewhat and there is scope for a test of the 1.2370 resistance. In view of the patchy momentum, a sustained move above this level seems unlikely (next resistance is at 1.2420). Support is at 1.2300 but the stronger level is at 1.2285”.

Next 1-3 weeks: “EUR hit a ‘fresh’ low of 1.2271 last Friday but rebounded to close almost unchanged for the day. We continue to hold the view that the immediate pressure is on the downside even though ‘neutral’ shorter-term indicators suggest that EUR could trade sideways for a few days first before moving lower to test the solid support at 1.2220. At this stage, a sustained move below this level seems unlikely. Resistance is at 1.2370 but only a move above 1.2420 would indicate that the current mild downward pressure has eased”.