FX Strategists at UOB Group noted EUR/USD still remains under downside pressure.
Key Quotes
24-hour view: “We highlighted last Friday that ‘the bias is tilted to the downside’ and EUR ‘could breach 1.1750 but the major support at 1.1730 is unlikely to come into the picture’. Our expectation did not materialize as EUR traded within a relatively narrow range (1.1752/1.1787) before closing little changed at 1.1771 (+0.01%). Momentum indicators are mostly ‘flat’ and EUR could continue to trade in a quiet manner. Expected range for today, 1.1750/1.1800.”
Next 1-3 weeks: “Last Wednesday (21 Jul, spot at 1.1780), we highlighted that EUR ‘is under mild downward pressure and could edge lower but it is too soon to expect a move to the major support at 1.1700’. We added, ‘1.1730 is already quite a strong support level’. Our view was not wrong as EUR struggled to break the short-term support at 1.1750 over the last few days. Despite the lackluster price actions, the downside risk remains intact. Only a break of 1.1835 (no change in in ‘strong resistance’ level) would indicate that the current mild downward pressure has eased.”
