Euro: Support zone key for next leg against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang highlights that EUR/USD momentum has flattened, with the Euro expected to trade between 1.1395 and 1.1440 intraday. Over 1–3 weeks, the pair is seen in a broader 1.1360–1.1450 range-trading phase. On a 1–3 month view, a break of the 1.1390/1.1410 support zone would target 1.1210.

Euro-Dollar locked in range phase

"24-HOUR VIEW: EUR fell to a low of 1.1407 on Tuesday. Yesterday, we highlighted the following: “Despite the relatively sharp decline, downward momentum has not increased much. However, there is scope for EUR to dip below 1.1390. The major support at 1.1360 is unlikely to come into view. Resistance is at 1.1420; a breach of 1.1430 would indicate that the immediate downward pressure has eased.” EUR subsequently declined and printed a low of 1.1390 before recovering to close largely unchanged at 1.1414 (+0.03%). Momentum indicators are turning flat, and today, we expect range-trading, most likely between 1.1395 and 1.1440."

"1-3 WEEKS VIEW: Last Friday (03 Jul, spot at 1.1430), we highlighted that “the bias for EUR is tilted to the upside.” After EUR fell sharply two days ago, we highlighted yesterday (08 Jul, spot at 1.1405) that “upward momentum has largely faded, and EUR has likely moved back into a rangetrading phase, and we expect it to trade between 1.1360 and 1.1450 for now.” There is no change in our view."

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