EUR/USD now moved into a consolidative phase – UOB

In opinion of FX Strategists at UOB Group, the downside pressure in EUR/USD appears to have ebbed somewhat in favour of some consolidation in the neart term.

Key Quotes

24-hour view: “The sudden jump in EUR that sent it soaring to an overnight high of 1.0924 came as a surprise. The rapid advance appears to be running ahead of itself and further sustained EUR strength is not expected for today. That said, EUR could edge above the 1.0924 high but any advance is viewed as part of a 1.0840/1.0955 range (a sustained rise above 1.0950 is not expected).”

Next 1-3 weeks: “After EUR dropped sharply last Thursday, we indicated on Friday (03 Apr, spot at 1.0840) that ‘there is room for EUR to weaken further but it is premature to expect a revisit of the March low of 1.0635’. EUR subsequently dropped to 1.0766 on Monday before staging a sudden and robust rebound yesterday (07 Apr). While our ‘strong resistance’ level at 1.0930 is still intact (overnight high of 1.0924), the mild downward pressure has dissipated. From here, EUR has likely moved into a consolidation phase and is expected to trade between 1.0750 and 1.1000 for a period.”