EUR/USD now seen within 1.1170/1.1380 – UOB

FX Strategists at UOB Group now expect EUR/USD to navigate within the 1.1170/1.1380 range in the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that EUR ‘could weaken further to 1.1240’ but held the view that ‘the next support at 1.1200 is unlikely to come into the picture’. Our view was not wrong as EUR dropped to 1.1211 before rebounding quickly. Despite the relatively rapid bounce, the underlying tone remains weak and EUR could dip below 1.1200 from here. However, the next support at 1.1170 is likely out of reach. Resistance is at 1.1280 but only a move above 1.1305 would indicate the current mild downward pressure has eased.”

Next 1-3 weeks: “There is not much to add to the update from last Friday (12 Jun, spot at 1.1280). As highlighted, the recent positive phase has ended and EUR has likely found a short-term top at 1.1422 last week. From here, EUR is expected to trade below the short-term top but for now, any weakness is viewed as part of a 1.1170/1.1380 consolidation range. Looking forward, if EUR register a daily closing below 1.1170, it would indicate the start of a pullback towards 1.1100.”