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According to FX Strategists at UOB Group, EUR/USD is likely to trade within a 1.1950-1.2150 range in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday ‘the rapid rise appears to be running ahead of itself and further sustained advance is unlikely’ and we expected EUR to ‘trade sideways between 1.2010 and 1.2075’. EUR subsequently traded between 1.2018 and 1.2066 before closing little changed at 1.2048 (+0.05%). Further sideway-trading would not be surprising even though the slightly firmed underlying tone suggests a higher range of 1.2030/1.2085.”

Next 1-3 weeks: “There is not much to add to the update from yesterday (08 Feb, spot at 1.2045). As highlighted, the recent weak phase has run its course and EUR is deemed to have moved into a consolidation and is likely to trade between 1.1950 and 1.2150. Looking ahead, barring a clear break of 1.2150, EUR is expected to mount another attempt to move closer to 1.1900 at a later stage.”