In opinion of FX Strategists at UOB Group, EUR/USD has now moved into a consolidation theme, likely between 1.16 and 1.19.
24-hour view: “EUR dropped to 1.1719 yesterday before rebounding quickly to an overnight high of 1.1806. The registered range is relatively close to our expected range of 1.1725/1.1820. The daily closing in NY (1.1800, +0.33%) is on the strong side and the bias for today is for EUR to edge higher towards 1.1840 (minor resistance is at 1.1820). Support is at 1.1775 followed by 1.1740.”
Next 1-3 weeks: “We pointed out yesterday that ‘risk of short-term top has increased further but confirmation is only upon a breach of 1.1700’. EUR subsequently breached 1.1700 but rebounded quickly after touching 1.1694. The break of the ‘strong support’ at 1.1700 indicates that the positive phase that started about 3 weeks ago has run its course. The current movement is viewed as the early stages of a consolidation phase. For the next couple weeks, EUR is likely to consolidate and trade between 1.1600 and 1.1900.”