The Strategists of FX at UOB Group maintain the neutral perspective in the pair, with probability of gravitate between 1.1860 and 1.2060 in the next 1-3 weeks.
Opinion of 24 hours: «instead of negotiating from the side as was expected, the EUR broke the resistance 1.1995 to hit a maximum of 1.2006 (before closing with a tone solid). The undertone remains positive and the greatest strength of the EUR towards 1.2030 it would not be surprising. At this stage, a movement sustained above this level appears unlikely (next resistance is at 1.2060). Only a setback below 1.1950 would indicate that the upward pressure immediately decreased (the support lower is at 1.1975)».
Next 1-3 weeks: «The recent weakening has decreased when the EUR moved above 1.1995 yesterday. However, the phase neutral that started a week ago is still intact, but the EUR is more likely to negotiate side-on to these higher levels instead of testing the support of 1.1820 (as previously expected). In other words, the trade side is expected from here, probably within a range of 1.1860/1.2060. Looking forward, the EUR has to move clearly above the maximum month-to-date near 1.2090/95 to indicate the start of a new bullish phase».