FX Strategists at UOB Group now expect EUR/USD to trade sideways in the near term.
24-hour view: “Our view yesterday was that there is “room for EUR to test 1.1285 but a move beyond 1.1310 is not expected”. In line with expectation, EUR touched 1.1285 during early NY hours before easing off to end the day little changed (1.1252, +0.03%). Upward pressure has eased and the current movement is viewed as part of a consolidation phase. In other words, EUR is expected to trade sideways for today even though the immediate bias is for it to probe the bottom of the expected 1.1225/1.1280 range”.
Next 1-3 weeks: “There is not much to add to the update from yesterday as EUR retreated after touching 1.1285 and ended the day little changed. As indicated yesterday (11 Jul, spot at 1.1255), EUR is expected to trade sideways for now, likely between 1.1200 and 1.1310. At this stage, there is no early indication on which direction is more ‘vulnerable’.