Euro: Upside bias capped by nearby resistance against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang highlights that EUR/USD remains in a short-term range, with flat momentum indicators pointing to intraday consolidation between 1.1415 and 1.1455. On a 1–3 week view, the bank keeps a mildly positive bias, but stresses firm resistance at 1.1470 and 1.1500 and a strong support at 1.1370. A break of 1.1390–1.1410 would expose 1.1210.

Euro holds mild upside bias

"24-HOUR VIEW: EUR briefly soared to a high of 1.1472 last Thursday. When EUR was at 1.1430 in the early Asian session on Friday, we indicated that “the brief rise did not lead to a clear increase in upward momentum, and instead of continuing to advance, EUR is more likely to rangetrade between 1.1410 and 1.1455.” Our view of range-trading was not wrong, as EUR traded between 1.1419 and 1.1462, closing little changed at 1.1435 (+0.04%). Momentum indicators are mostly flat, and we continue to expect EUR to range-trade today, most likely between 1.1415 and 1.1455."

"1-3 WEEKS VIEW: We revised our EUR view to mildly positive last Friday (03 Jul, spot at 1.1430). We highlighted that “the bias for EUR is tilted to the upside,” but we stated that “expect firm resistance at 1.1470 and 1.1500.” We will maintain this view as long as EUR holds above 1.1370 (no change in ‘strong support’ level)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)