FX Strategists at UOB Group now see EUR/USD looking to consolidate within the 1.12-1.13 range.
Key Quotes
24-hour view: “Our expectation for sideways consolidation 1.1070/1.1140 on Mon was incorrect. EUR staged a strong rally after taking out key resistances at 1.1162 and 1.1187 to touch a high of 1.1212. From here, it is plausible that a test of July’s highs of 1.1281 is on the cards today. Meanwhile, supports are at 1.1200 and 1.1160″.
Next 1-3 weeks: “As we reported in yesterday’s report, a NY close above 1.1130 would negate the ‘downside phase’. EUR closed up for a third day, by 0.85% to 1.1202. While upwards momentum appears strong, we are still not convinced to transit into a ‘positive phase’ as yet. As such, EUR is likely to consolidate recent gains and trades in a higher range between 1.1200 and 1.1300. A drop below 1.1160 indicates that the recent strength in EUR has ran its course and may be resuming its downtrend”.
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