In opinion of FX Strategists at UOB Group, the pair is looking to further retracements in the next weeks.

Key Quotes

24-hour view: “While EUR traded sideways and ended the day largely unchanged yesterday (NY close of 1.1408, -0.02%), the registered range of 1.1363/1.1433 was narrower than our expected 1.1350/1.1445 consolidation range. The consolidation phase appears incomplete and further sideway-trading is expected for now, albeit likely at a slightly higher range of 1.1370/1.1445”.

Next 1-3 weeks: “We just upgraded our ‘negative’ view on EUR to ‘bearish’ yesterday (13 Aug, spot at 1.1400) and there is no change to the outlook. As highlighted, unless there is further development on the macro-economic front, it is unlikely that EUR can maintain its recent pace of frenetic decline. Meanwhile, the immediate ‘target’ at 1.1365 was slightly exceeded as EUR hit an overnight low of 1.1363 and the next level to focus on is at 1.1285 (followed by 1.1185). On the upside, the ‘stop-loss’ level remains unchanged at 1.1500 for now”.