EUR/USD, according to UOB Group FX Strategists, is likely to extend the 1.1770-1.1895 range for the time being.
Observation for 24 hours: “We predicted EUR to ‘move sideways between 1.1800 and 1.1870’ yesterday, stating that ‘the fast comeback appears to be running ahead of itself and EUR is unlikely to strengthen much further.’ Even though EUR traded in a narrower range than projected (1.1794/1.1850), our prediction was correct. The underlying tone has softened slightly, and EUR has potential to fall further, but a break of major support at 1.1770 is improbable (minor support is at 1.1790). 1.1830 is the first level of resistance, followed by 1.1855.”
Within the next 1-3 weeks: “Yesterday’s update (15 July, spot at 1.1835) is still valid. As previously stated, the EUR is not yet ready to fall. EUR is likely to move for a while between 1.1770 and 1.1895 from here. Looking ahead, if the EUR closes below 1.1770 on a daily basis, it could be on its way to 1.1700. For the time being, the likelihood of EUR moving to 1.1700 is low, but it will remain so as long as EUR does not rise over 1.1895.”/n
