EUR/USD to trade down to an area of heavy price congestion around the 1.07 handle – Rabobank

June was almost a mirror image of May’s price action as EUR/USD recouped the majority of the losses it suffered during the prior month. Economists at Rabobank analyze the pair’s outlook.

Upside for EUR/USD is likely to be capped at this juncture

We expect another 25 bps hike from the ECB in July, but that is largely in the price, and with EUR/USD pushing back up towards the 1.10 handle, we think upside for the pair is likely to be capped at this juncture. 

Our forecast is for EUR/USD to trade down through support at the 50-Day Moving Average (DMA) at 1.0875 and the 100-DMA at 1.0816 to an area of heavy price congestion around the 1.07 handle.