EUR/USD is expected to keep navigating within the 1.1660-1.1880 for the time being, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “Yesterday, we held the view that EUR ‘is under mild downward pressure and could weaken to 1.1700’. However, after drifting to a low of 1.1709, EUR staged a surprisingly rapid rebound and touched an overnight high of 1.1814. Upward momentum has improved, albeit not by much. From here, the rebound in EUR has room to extend higher towards 1.1835. For today, a move beyond the major resistance at 1.1880 would come as a surprise. Support is at 1.1770 followed by 1.1740.”
Next 1-3 weeks: “There is not much to add to our update from Tuesday (11 Aug, spot at 1.1740). As highlighted, while EUR has likely formed a short-term top at 1.1915, any weakness in EUR is likely to be slow and is viewed as part of a broad 1.1600/1.1880 range. EUR traded in a relatively quiet manner over the past couple of days and for now, we continue to hold the same view wherein EUR is in a consolidation phase and is likely to trade sideways, albeit within a narrower range of 1.1660/1.1880 range.”
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