FX Strategists at UOB Group now expect EUR/USD to trade sideways in the near term.
24-hour view: “Our view yesterday was that there is “room for EUR to test 1.1285 but a move beyond 1.1310 is not expected”. In line with expectation, EUR touched 1.1285 during early NY hours before easing off to end the day little changed (1.1252, +0.03%). Upward pressure has eased and the current movement is viewed as part of a consolidation phase. In other words, EUR is expected to trade sideways for today even though the immediate bias is for it to probe the bottom of the expected 1.1225/1.1280 range”.
Next 1-3 weeks: “There is not much to add to the update from yesterday as EUR retreated after touching 1.1285 and ended the day little changed. As indicated yesterday (11 Jul, spot at 1.1255), EUR is expected to trade sideways for now, likely between 1.1200 and 1.1310. At this stage, there is no early indication on which direction is more ‘vulnerable’.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.