EUR/USD: Further decline not favoured – UOB

FX Strategists at UOB Group noted the likeliness of EUR/USD dropping to the 1.1800 mark keeps losing momentum.

Key Quotes

24-hour view: “EUR traded between 1.1850 and 1.1880 yesterday, narrower than our expected sideway-trading range of 1.1835/1.1890. The quiet price actions offer no fresh clues and we continue to expect EUR to trade sideways. Expected range for today, 1.1835/1.1885.”

Next 1-3 weeks: “Our update from yesterday (05 Jul, spot at 1.1860) still stands. As highlighted, downward momentum has waned and the prospect for EUR to move below 1.1800 has diminished. However, only a break of 1.1915 (no change in ‘strong resistance’ level) would indicate that the downside risk has dissipated. In order to rejuvenate the current flagging momentum, EUR has to move and stay below 1.1835 within these 1 to 2 days or a break of 1.1915 would not be surprising.”