Further slide to the 1.1800 range, according to UOB Group FX Strategists, appears to be losing pace in EUR/USD.
Observation for 24 hours: “The EUR ‘may go below 1.1825, but the next significant support at 1.1800 is likely out of reach,’ we said last Friday. While our prediction of EUR dropping to 1.1805 was correct, we did not expect the ensuing rapid and robust bounce to 1.1874. The downward momentum has faded, and the present trend is being considered as a consolidation phase. Today, EUR is expected to trade in a range of 1.1835 to 1.1890.”
Within the next 1-3 weeks: “We predicted that EUR would ‘trade with a downward bias towards 1.1800’ last Thursday (01 July, spot at 1.1855). ‘At this time, the chances of a sustained slide below this level are not high,’ we noted. On Friday, the EUR fell to 1.1805 before rebounding to settle at 1.1864 (+0.14%). The EUR’s downward momentum has slowed, and the possibility of a move below 1.1800 has dimmed. Only a break of 1.1915 (no change in the’strong resistance’ level) would signal that the downside risk has passed. EUR must move and stay below 1.1835 within the next 1 to 2 days to rekindle the current sagging momentum, or a break of 1.1915 would not be surprising.”/nRead More