EUR/USD seen extending the rangebound trade – UOB

FX Strategists at UOB Group keep the neutral view unchanged on EUR/USD for the time being.

Key Quotes

24-hour view: “EUR traded sideways yesterday, albeit at a narrower range that expected. Momentum indicators remain ‘neutral’ and EUR is expected to continue to trade sideways for today, likely within a 1.1260/1.1310 range”.

Next 1-3 weeks: “EUR traded in a narrow range and registered an ‘inside day’. The price action is in line with our view from Tuesday (02 Jul, spot at 1.1365) wherein EUR has moved into a ‘sideway-trading phase’. That said, the underlying tone is a tad soft and the immediate bias is tilted to the downside even though any weakness is expected to encounter solid support near the bottom of the expected 1.1220/1.1340 range (narrowed from 1.1200/1.1370 previously)”.