EUR/USD has now moved into a consolidative range, according to UOB Group FX Strategists, likely between 1.1790 and 1.1895.
Observation for 24 hours: “Yesterday, our prediction of ‘more EUR depreciation’ was erroneous, as the currency rallied sharply to a high of 1.1867. The quick recovery appears to be outpacing itself, and the EUR is unlikely to gain much more ground. EUR is more likely to trade in the 1.1820/1.1875 range today.”
Within the next 1-3 weeks: “Since late last week, we’ve had a bearish outlook on EUR. We mentioned yesterday (08 July spot at 1.1795) that the EUR is remained weak and that the next level to watch is 1.1740. The EUR’s subsequent quick comeback, which took out our’strong resistance’ level at 1.1860 (high of 1.1867), was unexpected. The break of the’strong resistance’ signaled the end of the EUR’s week-long downward trend. The present movement is considered to be the beginning of a consolidation period, and the EUR is expected to trade between 1.1790 and 1.1895 for the time being.”/n
