EUR/USD is expected to move into a 1.1770-1.1895 range in the coming weeks, according to UOB Group FX Strategists.
Observation for 24 hours: “Yesterday, our prediction that the EUR would ‘weaken to 1.1740’ was erroneous, as it challenged the 1.1770 level again before bouncing back strongly (high has been 1.1838). The quick recovery appears to be outpacing itself, and the EUR is unlikely to gain much more ground. Today, the EUR is more likely to move in a range of 1.1800 to 1.1870.”
Within the next 1-3 weeks: “We said yesterday (14 July, spot at 1.1775) that the EUR had “gone into a negative phase” and that it would “trade under pressure” unless it could move over the “strong resistance” level at 1.1840. We were surprised by the fast and rapid rise to a high of 1.1838 in the late New York session. While 1.1840 remains intact, the sudden loss of negative momentum shows that the EUR is not yet ready to fall. EUR is likely to fluctuate for a while between 1.1770 and 1.1895 from here.”/n
