In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, EUR/USD is still seen within the 1.0460-1.0630 range in the next weeks.
24-hour view: “We highlighted yesterday that ‘upward momentum has not improved by much and EUR is unlikely to advance further’ and we expected EUR to ‘trade between 1.0540 and 1.0615’. EUR subsequently rose to 1.0606 before staging a surprisingly sharp drop to 1.0502. Downward momentum has improved and the risk for today is on the downside. However, any weakness is likely to face solid support at 1.0485 (there is another strong support at 1.0460). The downside risk is intact as long as EUR does not move above 1.0575 (minor resistance is at 1.0550).”
Next 1-3 weeks: “We have expected EUR to consolidate for more than a week now. After EUR popped to a high of 1.0614, we highlighted yesterday (28 Jun, spot at 1.0580) that the risk of a break of the major resistance at 1.0630 has “increased somewhat”. EUR subsequently rose to 1.0606 before falling sharply. The build-up in shorter-term upward momentum has fizzled out. In other words, EUR is still consolidating within a range of 1.0460/1.0630.”
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