EUR/USD poised for extra choppiness – UOB

Spot remains neutral and is seen prolonging the choppy trade in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR dipped below our expected 1.2295/1.2340 consolidation range to hit a low of 1.2280 before rebounding. Despite the bounce from the low, the undertone is still weak and a deeper probe towards 1.2260 would not be surprising. However, the next support at 1.2235 is a major level and is unlikely to come into the picture. Resistance is at 1.2330 but the stronger level is just above yesterday’s peak at 1.2350”.

Next 1-3 weeks: “The recent erratic price action has resulted in a mixed outlook. Indicators are mostly ‘flat’ and at this stage, there is no early indication that EUR is ready to embark on a sustained directional move. In other words, the month-long neutral phase is intact and we expect EUR to continue to trade choppily within a broad 1.2235/1.2475 range. Looking further out, 1.2235 is acting as a solid support and a break of this level would increase the odds for a move below the March’s low of 1.2153”.