EUR/USD faces some consolidation in the near term – UOB

In opinion of FX Strategists at UOB Group, EUR/USD is expected to navigate the 1.1790-1.1895 range for the time being.

Key Quotes

24-hour view: “Our expectation for EUR to ‘edge higher and test 1.1895’ did not materialize as it traded in a relatively quiet manner between 1.1834 and 1.1879. The underlying tone still appears to be slightly positive and we continue to see room for EUR to edge higher. That said, a clear break of 1.1895 is unlikely. Support is at 1.1840 followed by 1.1820.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (09 Jul, spot at 1.1845). As highlighted, the recent weak phase in EUR has ended and the current movement is viewed as part of a consolidation phase and EUR is likely to trade between 1.1790 and 1.1895 for now. Looking ahead, a break of 1.1895 is not ruled out but only a daily closing above 1.1925 would indicate that EUR is ready for a stronger (and more sustained) recovery.”