According to FX Strategists at UOB Group, EUR/USD keeps the neutral bias and is expected to trade within the 1.1170/1.1380 range in the short-term.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is room for EUR to edge nearer to 1.1290’. We added, ‘1.1330 is unlikely to be challenged’. EUR subsequently rose to a high of 1.1302 before dropping back quickly (overnight low of 1.1221). While downward momentum has hardly improved, EUR could drift lower towards 1.1210 from here (next support is at 1.1170). For today, a sustained decline below this level is not expected. Resistance is at 1.1265 followed by 1.1290.”
Next 1 -3 weeks: “Looking back, we called for a short-term top on 12 Jun when EUR was trading at 1.1280 and expected EUR to trade between 1.1170 and 1.1380. When EUR moved towards 1.1170, we highlighted that EUR “has to close below 1.1170 before a more sustained weakness can be expected”. The rapid manner by which EUR rebounded from 1.1183 yesterday (01 Jul) suggests that EUR is not ready to move below 1.1170. To look at it another way, EUR could continue to trade between 1.1170 and 1.1380 for a while more.”
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