In opinion of FX Strategists at UOB Group, EUR/USD is seen extending the consolidative phase in the next weeks.
Key Quotes
24-hour view: “Expectation for EUR to “edge higher” did not materialize as it traded sideways within a 1.1051/1.1081 range before ending the day largely unchanged at 1.1072 (-0.05%). The underlying tone still appears to be slightly positive and we continue to see chance for EUR to edge higher towards 1.1095. The strong resistance at 1.1115 is not expected to come into the picture. Support is at 1.1060 followed by 1.1040″.
Next 1-3 weeks: “EUR traded in a tight 22 pips range yesterday (between 1.1061 and 1.1083), the second smallest 1-day range so far this year. The quiet price action offers no fresh clues and we continue to hold on to the same view from Monday (18 Nov, spot at 1.1055). The current price action is still viewed as part of a 1.1010/1.1115 sideway-trading range even though the near-term bias is on the upside. Looking forward, if EUR were to crack 1.1115, the focus would shift to 1.1150. All in, the current mild upward pressure is expected to remain intact unless EUR drops back below 1.1040 within these few days”.
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