EUR/USD is likely to trade between 1.2095 and 1.2245 - UOB

FX Strategists at UOB Group believe that EUR/USD is likely to trade between 1.2095 and 1.2245 in the next few weeks.

24-hour view: "We highlighted last Friday that “there is room for EUR to move above the major resistance at 1.2245 but a sustained advance above this level is unlikely”. However, EUR rose to 1.2239 before pulling back sharply (low has been 1.2159). Despite the relatively rapid drop, downward momentum has not improved by much. That said, the pullback in EUR could test the strong support 1.2145. Resistance is at 1.2205 followed by 1.2225."

Next 1-3 weeks: "EUR subsequently rose to 1.2239 before pulling back sharply to 1.2159. While the strong support at 1.2145 is still intact, the build-up in momentum has more or less dissipated. In other words, EUR is unlikely to move higher in a sustained manner. From here, EUR is more likely to trade between 1.2095 and 1.2245."