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FX Strategists at UOB Group noted EUR/USD is expected to remain within the 1.2150-1.2265 consolidation range.

Key Quotes

24-hour view: “We expected EUR to strengthen yesterday but we highlighted that ‘any advance is expected to face solid resistance at 1.2250’. We added, ‘the major resistance at 1.2265 is unlikely to come into the picture’. Our view was not wrong as EUR popped to 1.2254 during NY session before retreating quickly. Upward momentum has waned and the current movement is viewed as part of a consolidation. In other words, EUR is likely to trade sideways for today, expected to be within a 1.2195/1.2240 range.”

Next 1-3 weeks: “Our update from yesterday (01 Jun, spot at 1.2225) still stands. As highlighted, EUR is likely to trade between 1.2150 and 1.2265. EUR subsequently rose to 1.2254 before easing off. Looking ahead, EUR has to close below 1.2150 or above 1.2265 before a sustained directional move can be expected.”