EUR/USD still seen within a rangebound theme – UOB

FX Strategists at UOB Group expect the consolidative mood in EUR/USD to remain unchanged in the short-term horizon.

Key Quotes

24-hour view: “Our expectation for EUR to weaken was wrong as it rebounded strongly to an overnight high of 1.1333. While the rapid bounce appears to be running ahead of itself, there is scope for EUR to extend higher. That said, a sustained rise above the strong 1.1380 resistance is unlikely (minor resistance is at 1.1360). Support is at 1.1300 but the stronger level is at 1.1265.”

Next 1-3 weeks: “There is not much to add to the update from last Friday (12 Jun, spot at 1.1280). As highlighted, the recent positive phase has ended and EUR has likely found a short-term top at 1.1422 last week. From here, EUR is expected to trade below the short-term top but for now, any weakness is viewed as part of a 1.1170/1.1380 consolidation range. Looking forward, if EUR register a daily closing below 1.1170, it would indicate the start of a pull-back towards 1.1100.”