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EUR/USD is seen gradually receding towards the 1.1180 region, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that EUR “could dip below 1.1200 but 1.1180 is unlikely to come into the picture for now”. EUR subsequently dipped to 1.1192 before recovering slightly. While the underlying tone is still on the soft side, lackluster momentum suggests a sustained decline is unlikely. From here, EUR is expected to trade sideways to slight lower, likely within a 1.1190/1.1230 range”.

Next 1-3 weeks: “The price action in EUR since Monday (08 Jul, spot at 1.1225) is in line with our expectation wherein EUR is “expected to trade with a downside bias towards 1.1180″. EUR drifted lower and touched 1.1192 yesterday (09 Jul) and the movement clearly lacks ‘urgency’. While downward momentum remains lackluster, the bias is still tilted to the downside until EUR can move back above the strong resistance at 1.1255 (level was previously at 1.1270). A dip below 1.1180 is not ruled out but for now, the prospect for a break of the year-to-date low of 1.1106 is not high (there is another support at 1.1140)”.