- EUR/USD moves mainly sideways on Thursday
- Currency pair unlikely to break out above 1.1850
- There is nevertheless a small bias to the upside
From the Eurozone, the latest FX news is that the EUR/USD currency pair remains relatively neutral, although analysts widely expect it to trade in a higher range during the next couple of weeks. This is according to UOB Group’s FX Strategists.
They added that the EUR traded predominantly sideways yesterday until very late in the New York session, when it suddenly moved higher and broke through the 1.1710 resistance level. At one stage, it traded at 1.1738.
The strong daily close that followed hints at more upward pressure, strategists stated. Nevertheless, 1.1760 is a very important level and the currency pair is expected to encounter heavy resistance there.
In light of the positive expectations, one cannot rule out an intra-day surge above this level, but a clear break above the next resistance level at 1.1790 would surprise the market. The nearest support level is currently at 1.1700, and the next one is at 1.1665.
When it comes to what might happen over the next three weeks, the analysts said that the muted price action of the last few days did not provide any clues. From a longer-term point of view, the sideways trend that began early in June is still in place.
They expect this to remain the case unless the EUR/USD can clearly break out of the range of 1.1507 to 1.1851 that dominated the market in June. Taking into account the fact that price action for this currency pair has been rather lackluster recently, that does not seem likely to occur any time soon.
There is a small bias to the upside over the next one to three weeks, the analysts believe, although any strong movements in the EUR are seen as part of a consolidation range between 1.1640 and 1.1850. They say that a clear break above 1.1850 appears unlikely at this point.
