The pair is seen extending its consolidative theme for the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday that the “immediate bias is tilted to the downside” but added, “any weakness is unlikely to move clearly below the expected 1.1655/1.1720 range”. EUR subsequently dipped to an overnight low of 1.1654 before ending the day on a soft note (NY close of 1.1658). The underlying tone has weakened and the bias is still on the downside. That said, a clear break of the 1.1620 support seems unlikely for now (1.1640 is another rather strong level). Resistance is at 1.1685 but the stronger level is at 1.1710″.
Next 1-3 weeks: “There is not much to add as EUR touched a high of 1.1745 yesterday before easing off. As highlighted yesterday, the recent mild downward pressure has eased and EUR is expected to trade sideways for now, likely within a broad 1.1620/1.1790 range. From a longer-term perspective, EUR has been trading in a relatively quiet manner within a 1.1507/1.1790 range since mid-June and with most indicators at ‘neutral’ level, it appears unlikely that EUR is ready to embark of a sustained directional move anytime soon”.
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