EUR/USD still expected to remain side-lined – UOB

FX Strategists at UOB Group see EUR/USD still navigating within the 1.1170/1.1380 in the next weeks.

Key Quotes

24-hour view: “Our expectation for ‘the rebound in EUR to extend higher’ was incorrect as it dropped sharply to an overnight low of 1.1226. The rapid decline appears to be running ahead of itself but with no sign of stabilization just yet, EUR could dip below the overnight low. That said, the next support at 1.1200 is likely out of reach. Resistance is at 1.1295 followed by 1.1325.”

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 registers a daily closing below 1.1170, it would indicate the start of a pull-back towards 1.1100.”