EUR/USD could attempt another visit to 1.2400 – UOB

FX Strategists at UOB Group did not rule out another test to the 1.2400 handle in the short-term horizon.

Key Quotes

24-hour view: “Expectation with sideway trading was wrong as EUR skidded and dropped to a low of 1.2298. The decline appears to be running ahead of itself and further sustained weakness seems unlikely. From here, a retest of the low the near 1.2300 would not be surprising but barring a clear break below 1.2280, this could be followed by a rebound towards 1.2360”.

Next 1-3 weeks: “The release of ECB’s minutes yesterday sent EUR tumbling to a low of 1.2298. The ‘key support’ highlighted at 1.2280 in recent updates is still intact and as long as this level is not taken out, we continue to see chance for EUR to stage another attempt to move clearly above 1.2400. However, upward pressure has been dented and the odds for a clear break above 1.2425 have diminished. Further up, last month’s top at 1.2475 is unlikely to come into the picture”.