In view of FX Strategists at UOB Group, EUR/USD remains biased for extra consolidation in the near term.
Key Quotes
24-hour view: “The expectation for a “breach of 1.0930″ was incorrect as EUR traded in a narrow range (between 1.0950 and 1.0989) and registered an ‘inside day’. The consolidation phase appears to be close to ending and a break above the strong 1.1000 resistance could lead to a rapid rise to 1.1025. Support is 1.0950 but the stronger level is at 1.0930″.
Next 1-3 weeks: “The sideway-trading phase that started one week ago (03 Oct, spot at 1.0960) remains intact as EUR traded in a narrow 39 pips range yesterday (between 1.0950 and 1.0989). As highlighted over the past few days, the top of the expected 1.0890/1.1025 range appears to be more vulnerable. Shorter-term indicators (see 24-hour view above) suggest EUR may be ready to challenge 1.1025 soon (if it can surmount the rather strong level of 1.1000). Looking ahead, the next resistance above 1.1025 is at 1.1050 and only a clear break of this level would indicate that EUR is ready to revisit last month’s top near 1.1110″.
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