EUR/USD: Major resistance is at 1.0785 – UOB Group

The Euro (EUR) is likely to trade in a range for now, probably between 1.0680 and 1.0785. It might drift higher, but any advance is unlikely to reach the major resistance level at 1.0785, UOB Group analysts note.

Rangebound for the time being

24-HOUR VIEW: “Two days ago, EUR rose to 1.0776 before pulling back. Yesterday, we indicated that ‘the pullback in overbought conditions suggests EUR is unlikely to rise further,’ and we expected EUR to trade in a sideways range of 1.0710/1.0760. EUR subsequently traded sideways between 1.0709 and 1.0747, closing largely unchanged at 1.0744 (+0.06%). Despite the relatively quiet price action, the underlying tone has firmed somewhat. Today, we expect EUR to drift higher, but any advance is unlikely to reach the major resistance at 1.0785 (there is another resistance level at 1.0765). On the downside, if the pair breaks below 1.0715 (minor support is at 1.0730), it would suggest that the current mild upward pressure has eased.”

1-3 WEEKS VIEW: “We continue to hold the same view as two days (01 Jul, spot at 1.0735). As highlighted, EUR is likely to trade in a range for now, probably between 1.0680 and 1.0785.”