Below 1.1170 EUR/USD risks a deeper pullback, suggested FX Strategists at UOB Group.
24-hour view: “Our expectation for EUR to “test 1.1170 first before a recovery can be expected” did not materialize as it traded in a relatively quiet manner between 1.1193 and 1.1239 before closing unchanged at 1.1217. Momentum indicators are neutral and the current movement in EUR is viewed as part of a consolidation phase. In other words, EUR is expected to trade sideways for today, likely between 1.1195 and 1.1250.”
Next 1-3 weeks: “There is not much to add to our update from Tuesday (23 Jun, spot at 1.1270). As highlighted, the movement in EUR is viewed as part of a consolidation phase and EUR is expected to trade between 1.1170 and 1.1380 for a period. While downward pressure has ticked up over the past couple of days, EUR has to close below 1.1170 before a more sustained weakness in EUR can be expected. At this stage, the prospect for such a move is not high but it would continue to increase unless EUR moves and stays above 1.1300 within these 1 to 2 days.”