The likelihood of the EUR/USD falling to the 1.1800 level continues to lose steam, according to UOB Group FX Strategists.
Observation for 24 hours: “Yesterday, the EUR traded in a smaller range of 1.1850 to 1.1880 than our projected sideways trading range of 1.1835/1.1890. We continue to expect EUR to move sideways due to the lack of new hints provided by the quiet price action. Today’s expected range is 1.1835/1.1885.”
Within the next 1-3 weeks: “Yesterday’s update (05 Jul, spot at 1.1860) is still valid. As previously said, bearish momentum has slowed, and the likelihood of EUR falling 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.”/n
