EUR/USD: Any advance is likely part of a higher range of 1.1700/1.1755 - UOB Group

Euro (EUR) could edge higher against US Dollar (USD); any advance is likely part of a higher range of 1.1700/1.1755. In the longer run, no change in view; there is still a chance (albeit a limited one) for EUR to pull back to 1.1660, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Chance for EUR to pull back to 1.1660

24-HOUR VIEW: "Following Tuesday's price movements, we indicated yesterday (Wednesday) that 'the price action did not result in any increase in either downward or upward momentum.' We expected EUR to 'trade in a range between 1.1690 and 1.1760.' EUR subsequently traded in a much narrower range than expected (1.1689/1.1729), closing largely unchanged at 1.1719 (-0.04%). Despite the quiet price action, there has been a slight increase in upward momentum. While this is likely to lead to EUR edging higher, we view any advance as part of a higher range of 1.1700/1.1755. In other words, EUR is unlikely to break clearly above 1.1755."

1-3 WEEKS VIEW: "On Tuesday (08 Jul, spot at 1.1745), we highlighted that 'while there has been no significant increase in downward momentum, the current pullback in EUR could extend to 1.1660.' Since then, EUR has not been able to make much headway to the downside. However, as long as the 'strong resistance' at 1.1780 (level was at 1.1795 yesterday) remains intact, there is still a chance (albeit a limited one) for EUR to pull back to 1.1660. That is to say, there is no change in our view."