EUR/USD solid hurdle lines up at 1.1790 – UOB

The pair’s upside is expected to meet a strong hurdle around 1.1790, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR registered and ‘inside day’ and traded sideways as expected albeit at a narrower range than anticipated. The undertone has improved somewhat but based on the lackluster momentum, any up-move is expected to face solid resistance at 1.1790. Further up, the next resistance at 1.1820 is unlikely to come under threat. Support is at 1.1730 followed by 1.1705”.

Next 1-3 weeks: “The neutral phase that started on 07 Aug (spot at 1.1785) is still intact as EUR traded sideways to slightly lower for the past two weeks within a range of less than 200 pips (between 1.1661 and 1.1846). While we continue to hold a neutral view for this pair, we are anticipating a deeper pullback but only a NY closing below 1.1680 would indicate that a move towards an immediate target of 1.1580 has started. This scenario still seems likely unless EUR can move and stay above 1.1790 in the next 1 to 2 days. A move back above 1.1790 would suggest further range trading”.