Home EUR/USD seen sidelined near-term – UOB
FXStreet News

EUR/USD seen sidelined near-term – UOB

In opinion of FX Strategists at UOB Group, EUR/USD is expected to navigate within a consolidative mood for the time being.

Key Quotes

24-hour view: “While we expected EUR to weaken last Friday, we held the view ‘any weakness is part of a 1.1145/1.1200 range’. EUR subsequently dropped to 1.1123 before rebounding quickly. Despite the relatively sharp drop, downward momentum has not improved by much and the 1.1123 low is likely ‘safe’ for today. That said, it is too early to expect a recovery and EUR is more likely to consolidate and trade sideways. Expected range for today, 1.1135/1.1190.”

Next 1-3 weeks: “As highlighted, the movement in EUR is likely the ‘early stages of a corrective pullback’ but any weakness is viewed as part of a broad 1.1110/1.1230 range and a sustained decline below 1.1110 appears unlikely. The subsequent short-lived dip in EUR to 1.1123 last Friday and the rapid recovery reinforces our view. The 1.1110 level is a relatively strong support and a clear break of this level would suggest that last week’s peak at 1.1239 could be a more significant top than currently expected.”

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.