EUR/USD: Expected to trade in a range between 1.1730 and 1.1805 – UOB Group
Euro (EUR) is expected to trade in a range between 1.1730 and 1.1805. In the longer run, upward momentum is slowing rapidly, but there is a slim chance for EUR to rise toward 1.1830 before a more sustained and notable pullback is likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Upward momentum is slowing rapidly
24-HOUR VIEW: "After our expectation for EUR to 'retest the 1.1830 level' two days ago did not materialise, we highlighted yesterday that 'there is still a chance for EUR to retest 1.1830.' We also highlighted that 'support is at 1.1775; a breach of 1.1745 could trigger a deeper pullback.' However, EUR did not retest 1.1830. Instead, it fell sharply, but briefly, to 1.1715 before rebounding to close at 1.1756, down by 0.36%. The price movements did not result in any increase in downward momentum. Today, we expect EUR to trade in a range, probably between 1.1730 and 1.1805."
1-3 WEEKS VIEW: "We have viewed EUR positively since last week. Tracking the advance, in our most recent narrative from two days ago (02 Jul, spot at 1.1800), we indicated that 'overbought conditions suggest a slower pace of advance.' We added, 'it remains to be seen whether 1.1900 is within reach.' We also pointed that 'if EUR breaks below 1.1715 (‘strong support’ level), it would mean that the advance has stalled.' Yesterday, EUR dropped to a low of 1.1717 and then quickly rebounded. Upward momentum is slowing rapidly, but as long as 1.1715 is not breached, there is a slim chance for EUR to rise toward 1.1830 before a more sustained and notable pullback is likely."
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FXStreet Insights Team
FXStreet
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