EUR/USD: Further consolidation on the cards – UOB

In light of FX Strategists at UOB Group, EUR/USD is expected to remain within a consolidative range in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that EUR ‘could drift lower but any weakness is viewed as part of a 1.0880/1.0950 range’. EUR subsequently popped to a high of 1.0967, dropped back to 1.0891 before ending the day on a soft note at 1.0912. While the bias is still tilted to the downside, lackluster momentum suggests any weakness is likely limited to a probe of the 1.0860 support (a sustained decline below this level is not expected). Resistance is at 1.0945 followed by 1.0970.”

Next 1-3 weeks: “There is not much to add to the update from last Wednesday (08 Apr, spot at 1.0890). As highlighted, EUR has moved into a consolidation phase and is expected to trade between 1.0750 and 1.1000 for a period. After the rapid but short-lived swings over the several weeks, the overall outlook is mixed for now.”