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According to FX Strategists at UOB Group, EUR/USD could likely move into a consolidative phase unless it resumes the upside in the near-term.

Key Quotes

24-hour view: “In line with our expectation, EUR traded sideways yesterday even though the registered range of 1.1031/1.1064 is narrower than our expected range of 1.1035/1.1085. Momentum indicators are still mostly neutral and the current movement is still viewed as part of a consolidation phase. In other words, we continue to expect EUR to trade sideways, likely between 1.1030 and 1.1070.”

Next 1-3 weeks: “EUR dropped to a low of 1.1031 before ending the day on a soft note at 1.1042 (-0.14%). The pick-up in momentum from last Friday’s (31 Jan) strong surge to 1.1096 has eased considerably. From here, unless EUR recover above 1.1070 within these 1 to 2 days, a breach of 1.1015 (no change in ‘strong support’ level) would indicate that our view from Monday (03 Feb, spot at 1.1090) for the rebound in EUR to extend further is premature. To put it another way, unless EUR recover soon, the current price action looks more akin to be part of a consolidation phase instead of a strong rebound.”