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In opinion of FX Strategists at UOB Group, EUR/USD is now likely to have moved into a consolidative range between 1.2150 and 1.2265.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘downward pressure has eased and the current movement is viewed as part of a consolidation’ and we expected EUR to ‘trade sideways between 1.2160 and 1.2220’. However, EUR rose to 1.2231 before settling on a firm note at 1.2225 (+0.30%). Upward momentum is beginning to build and the risk for today is on the upside. However, any advance is expected to face solid resistance at 1.2250. The major resistance at 1.2265 is unlikely to come into the picture. Support is at 1.2205 followed by 1.2185.”

Next 1-3 weeks: “We highlighted yesterday that ‘there is still chance, albeit not a high one for EUR to test 1.2130 again’. We added, ‘a breach of 1.2250 would indicate that EUR could trade sideways for a period of time’. EUR subsequently rose to 1.2231 and while 1.2250 is still intact, shorterterm momentum is beginning to shift to the upside. That said, it is too early to expect the start of a sustained advance. From here, EUR is likely to trade between 1.2150 and 1.2265.”