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FX Strategists at UOB Group now believe EUR/USD could attempt some consolidation between 1.1200 and 1.1310.

Key Quotes

24-hour view: “EUR surged during NY hours and took out a couple of strong resistance levels with ease. While the advance appears to be running ahead of itself, there is room for EUR to test 1.1285. At this stage, a move beyond 1.1310 is not expected. Support is at 1.1225 followed by 1.1200. The latter level is a solid support now and is unlikely to come into the picture”.

Next 1-3 weeks: “The ‘downside bias’ in EUR highlighted on Monday (08 Jul, spot at 1.1225) has fizzled out as the strong overnight rebound took out the ‘strong resistance’ at 1.1255 (high of 1.1263). The price action was not exactly surprising as we noted yesterday (10 Jul, spot at 1.1200) that “downward momentum remains lackluster” and the weakness in EUR “lacks urgency”. From here, EUR is expected to trade sideways, likely between 1.1200 and 1.1310″.