FX Strategists at UOB Group now expect the pair to navigate between 1.1320 and 1.1520 in the near term.
“EUR traded in a choppy manner yesterday, rising initially to a fresh high of 1.1489 before plummeting to hit a low of 1.1390 during NY hours. The choppy swing has resulted in a mixed outlook but the undertone is on the weak side and this is expected to lead to a drift lower to test the 1.1380 low seen on Monday (10/7). The next support at 1.1350 is unlikely to come into the picture for now. Resistance is at 1.1445 but the stronger level is at 1.1480”.
“While EUR broke above the strong weekly trend-line resistance at 1.1445 on Tuesday, the failure to hold on to its gains coupled with the sharp drop indicates that the shift to a bullish stance yesterday was wrong. We are neutral now and the recent price action looks like the early stages of a ‘rising wedge’ formation but the key support is much further down at 1.1320. In the meanwhile, EUR is expected to continue to trade choppily, likely within a broad 1.1320/1.1520 range”.