It is expected that the euro / dollar pair will test a strong barrier around 1.1790, experts say FX in the UOB Group. “The euro formed an” internal day “and traded in the outset, as expected, although in a narrower range than expected. The picture has somewhat improved, but based on the dim momentum, it is expected that any upward movement will face a steady resistance at 1.1790. Further, the next resistance at 1.1820 is unlikely to be under threat. Support is located at 1.1730, followed by 1.1705. The neutral phase, which began on August 7 (when the exchange rate was at 1.1785), remains unchanged, as EUR is trading in a slightly lower range over the past two weeks. This range is less than 200 points (between 1.1661 and 1.1846).
Although we continue to take a neutral view of this pair, we expect a deeper rollback, but only the closing of New York below 1.1680 will indicate that the move to the nearest target of 1.1580 has begun. This scenario still seems likely, if the EUR can not move and stay above 1.1790 for the next 1-2 days. Movement above 1.1790 suggests further trade in the range, “experts said.