FX Strategists at UOB Group do not rule out a challenge of the 1.1200 handle in the very near term.
24-hour view: “We highlighted last Friday that EUR “could continue to trade in a choppy manner”. EUR subsequently surrendered all of its Thursday (18 Jul) gain as it dropped to a 1.1202 during late NY hours. While the outlook remains mixed, the slightly weakened underlying tone suggests EUR could dip below the strong 1.1200 support. That said, the next support at 1.1180 is unlikely to come into the picture. Resistance is at 1.1235 by followed by 1.1265”.
Next 1-3 weeks: “EUR surrendered almost all of last Thursday’s (18 Jul) gain as it practically ‘mirrored’ Thursday range on Friday but settled on a soft note (NY close of 1.1220, -0.48%). As highlighted in our update earlier on Friday (18 Jul, spot at 1.1225), the “outlook for EUR is mixed” and it is “likely to trade sideways in an ‘undecided’ manner”. That said, after Friday’s price action, EUR could trade at a lower range of 1.1160/1.1300 instead of the 1.1200/1.1320 expected previously”.
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