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FX Strategists at UOB Group still expect EUR/USD to navigate within a consolidative theme in the next weeks.

Key Quotes

24-our view: “Our view for “another dip before stabilization can be expected” was incorrect as EUR staged a surprisingly robust rebound and took out a few strong resistance levels with ease (EUR closed +0.74% higher, the biggest 1-day gain since early June). While the rapid rebound appears to be running ahead of itself, there is room for EUR to edge above 1.1300. For today, the next resistance at 1.1330 is unlikely to come into the picture. Support is at 1.1250 followed by 1.1220.”

Next 1-3 weeks: “Despite the relatively sharp pull-back in EUR last week, we highlighted that “downward pressure has ticked up but EUR is still likely in a 1.1170/1.1380 consolidation range” and added, EUR “has to close below 1.1170 before a deeper pull-back can be expected”. That said, the sudden and sharp rebound yesterday was not exactly expected. Downward pressure has more or less dissipated and from here, EUR is expected to consolidate and trade between 1.1170 and 1.1380 for a period.”