According to UOB Group’s FX Strategists, the EUR/USD could drop down to the 1.1800 range in the next weeks.
Observation for 24 hours: “While we predicted EUR decline yesterday, we cautioned that ‘any weakness is likely limited to 1.1825 due to the oversold conditions.’ EUR, on the other hand, did not reach 1.1825 because it rebounded after touching 1.1836. Although the downward momentum has slowed, the downside danger remains. EUR could fall below 1.1825 from here, but the next key support at 1.1800 is unlikely to be reached. 1.1865 is the first level of resistance, followed by 1.1885.”
Within the next 1-3 weeks: “There isn’t anything to add to yesterday’s update (01 Jul, spot at 1.1855). EUR is expected to trade with a negative tilt towards 1.1800, as previously stated. At this point, the chances of a sustained drop below this level are slim. If EUR falls below 1.1800, the next support level is at 1.1770. Overall, the EUR is projected to remain under pressure unless it can break through the’strong resistance’ level of 1.1915 (which has remained unchanged from yesterday).”/n
