FX Strategists at UOB Group still see EUR/USD moving within a consolidative theme in the short-term horizon.
Key Quotes
24-hour view: “Expectation for EUR to “edge higher” yesterday was incorrect as it plummeted overnight and touched 1.1012. Despite the rapid decline, downward momentum has not improved by much. That said, EUR could drift lower from here towards 1.0990. For today, the risk for a sustained break of this level is not high (1.1010 is already a relatively strong support). On the upside, a move above 1.1075 would indicate the current mild downward pressure has eased (minor resistance is at 1.1050)”.
Next 1-3 weeks: “As highlighted, despite the relatively sharp drop on Monday (16 Sep), we continue to expect EUR to “trade sideways”. The subsequent rapid bounce in EUR reinforces our view and we continue to expect EUR to trade sideways within a broad 1.0925/1.1130 range for now. Looking forward, EUR has to register a NY close out of the expected range before a more sustained directional price action can be expected”.
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