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FX Strategists at UOB Group now believe EUR/USD has moved into a consolidative range.

Key Quotes

24-hour view: “EUR popped to a high of 1.1916 (post-ECB) before dropping back down sharply and ended the day a tad higher at 1.1813 (+0.09%). The sharp and short-lived swings have resulted in a mixed outlook and EUR could trade sideways within a broad range of 1.1775/1.1870. For today, a move back above the 1.1916 high would come as a surprise.”

Next 1-3 weeks: “Two days on 09 Sep (spot at 1.1770), we highlighted that ‘downward momentum is beginning to improve but EUR has to close below 1.1750 before a sustained decline can be expected’. We noted that ‘the prospect for such a scenario is not high but it would increase quickly within these few days unless EUR moves back above 1.1845’. EUR rose to a high of 1.1916 yesterday and while the advance lasted only briefly, downward momentum has more or less dissipated. In other words, EUR has likely moved back into a consolidation phase and could trade between 1.1750 and 1.1920 for a while.”