EUR/USD remains within a consolidative phase – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted EUR/USD is still seen trading between 1.0390 and 1.0650 in the next weeks.

Key Quotes

24-hour view: “Yesterday, we expected ‘further EUR consolidation within a range of 1.0470/1.0560’. However, EUR rose briefly to 1.0582 before easing off. Downward momentum has improved a tad and the bias for EUR is tilted to the downside. However, any weakness is unlikely to challenge 1.0470 (1.0500 is already quite a strong support level). Resistance is at 1.0555 followed by 1.0580.”

Next 1-3 weeks: “We have expected EUR to consolidate since late last week. There is no change in our view for now but the decreased volatility over the past couple of days suggests a 1.0390/1.0650 range is likely enough to contain the price actions in EUR for now (vs 1.0350/1.0650 previously).”