EUR/USD: A move to 1.1800 stays on the cards – UOB

EUR/USD could slip back to the 1.1800 area in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While we expected EUR to weaken yesterday, we highlighted that ‘in view of the oversold conditions, any weakness is likely limited to 1.1825’. However, EUR did not get to 1.1825 as it rebounded after touching 1.1836. Downward momentum has waned somewhat but the risk remains on the downside. From here, EUR could dip below 1.1825 but the next major support at 1.1800 is likely out of reach. Resistance is at 1.1865 followed by 1.1885.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (01 Jul, spot at 1.1855). As highlighted, EUR is likely to trade with a downward bias towards 1.1800. At this stage, the odds for a sustained decline below this level are not high. Looking ahead, if EUR breaks below 1.1800, the next support is at 1.1770. All in, EUR is expected to stay under pressure unless it can move above the ‘strong resistance’ at 1.1915 (no change in level from yesterday).”