FX Strategists at UOB Group noted EUR/USD still risks further pullbacks in the next weeks.
24-hour view: “We highlighted yesterday that “downward pressure has eased and the risk of a sustained decline in EUR is not high” and we expected EUR to “trade within a 1.1750/1.1800 range”. Our view was not wrong even though EUR traded within a slightly wider range than expected (1.1750/1.1804). The underlying tone has improved somewhat and EUR could edge higher for today. However, any advance is likely limited to a test of 1.1815. The strong resistance at 1.1835 is unlikely to come under threat. Support is at 1.1775 followed by 1.1750.”
Next 1-3 weeks: “Our update from yesterday (21 Jul, spot at 1.1780) still stands. As highlighted, EUR is under mild downward pressure and could edge lower but it is too soon to expect a move to the major support at 1.1700. Ahead of 1.1700, there is another relatively strong support at 1.1730. On the upside, a break of 1.1835 would indicate the current mild downward pressure has eased.”