United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note EUR/USD under mild downward pressure after slipping toward 1.14, but expects any intraday decline to be limited to a test of 1.1380, with major support at 1.1360 unlikely to be challenged. Over the next 1–3 weeks, they view current price action as range trading between 1.1360 and 1.1465, with a deeper target at 1.1210 if key support breaks.

Euro-Dollar bias soft but rangebound

"24-HOUR VIEW: While we expected EUR to “edge lower” yesterday, we indicated that “any decline is likely limited to a test of 1.1390.” However, EUR did not quite test 1.1390 as it eased to a low of 1.1396. While EUR remains under mild downward pressure and could continue to edge lower today; this time around, any decline is likely to be limited to a test of 1.1380. The major support at 1.1360 is unlikely to come under threat. Resistance is at 1.1415; a breach of 1.1430 would suggest that the mild downward pressure has eased."

"1-3 WEEKS VIEW: Our update from yesterday (21 Jul, spot at 1.1415) remains valid. As highlighted, “the current price movements are likely part of a range-trading phase between 1.1360 and 1.1465.”."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)