EUR/USD is still seen within range in the near-term – UOB

FX Strategists at UOB Group noted EUR/USD is expected to navigate between 1.1170 and 1.1380 in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that EUR ‘could dip below the overnight low of 1.1226 but next support at 1.1200 is likely out of reach’. Our view was not wrong as EUR rebounded after touching 1.1205. Despite the relatively rapid bounce from the low, the underlying tone still appears weak. From here, there is scope for EUR to dip below 1.1200 first before a more sustained recovery can be expected. For today, the next support at 1.1170 is unlikely to come into the picture. On the upside, if EUR moves above 1.1300 (minor resistance at 1.1275), it would indicate the current downward pressure has dissipated.”

Next weeks: “We have held the same view since last Friday (12 Jun, spot at 1.1280) wherein EUR has found a short-term top at 1.1422 on Wednesday (10 Jun). We highlighted that EUR is expected to trade below the short-term top but any weakness is viewed as part of a 1.1170/1.1380 consolidation range. While downward pressure has ticked up, EUR has to close below 1.1170 before a deeper pull-back can be expected. Meanwhile, we continue to expect EUR to consolidate between 1.1170 and 1.1380.”