EUR/USD stays negative, a test of 1.2200 is alive – UOB

The pair’s stance remains negative in the near term, while a test of the 1.2200 area remains a possibility, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “The anticipated ‘stronger’ rebound did not materialize as EUR traded within a surprisingly narrow range of 59 pips last Friday. The consolidation phase appears incomplete and further range trading is expected from here, likely within a range of 1.2255/1.2335”.

Next 1-3 weeks: “EUR traded within a surprisingly narrow range of 1.2278/1.2337 last Friday; the 59 pips is the smallest 1-day range since late December. Nevertheless, we continue to hold a ‘negative’ view on EUR and see increasing odds for a deeper down-move towards the month-to-date low of 1.2204. This is a major level and is expected to offer solid support. Resistance is at 1.2360 but only a move above 1.2400 would indicate that the current mild downward pressure has eased”.