EUR/USD stays negative, a visit of 1.2204 is on the cards – UOB

The pair’s stance remains negative in the short term, while the probability of a visit to the 1.2200 area has increased, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR traded sideways as expected albeit at a higher range than anticipated. Indicators are still mostly ‘neutral’ which suggest further sideways trading from here, likely within 1.2270/1.2360 range”.

“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”.