EUR/USD still targets 1.2165 – UOB

FX Strategists at UOB Group remains neutral on the pair, expecting a potential test of 1.2165.

Key Quotes

24-hour view: “While EUR extended it rebound, it did not reach the 1.2300 'target' highlighted last Friday. The rapid pullback from a high of 1.2287 tested the solid support at 1.2200/05 before staging another recovery (low has been 1.2204). The undertone has improved somewhat but it is too early to expect a sustained rebound. EUR is expected to trade sideways for now, likely within a 1.2220/1.2300 range”.

Next 1-3 weeks: “EUR ended the day largely unchanged on Friday as it failed for the second time to move clearly below the short-term 1.2200 support (low has been 1.2204). While the recent weakness has stabilized somewhat, it is too early to expect a sustained recovery. As highlighted in the Chart of the Day update last Thursday (08 Feb, spot 1.2270), the current correction in EUR could extend deeper towards the 1.2165 in the coming days. Overall, EUR is expected to continue to stay under pressure until it can reclaim 1.2360 (key resistance previously at 1.2410)”.