EUR/USD rangebound theme still intact – UOB

According to FX Strategists at UOB Group, the pair should likely extend its consolidative pattern in the next weeks.

Key Quotes

24-hour view: “EUR traded in a relatively quiet manner and registered an ‘inside trading day’ last Friday. The undertone has improved somewhat which suggests scope for a move above last week’s 1.2388 peak but the next resistance at 1.2420 is unlikely to come into the picture. Support is at 1.2330 but the stronger level is at 1.2305”.

Next 1-3 weeks: “EUR continues to trade a muted manner last Friday and the recent mild downward pressure has eased. We previously expected EUR to move lower and test the strong 1.2200 support but this is unlikely to happen now. That said, the neutral phase that started 2 weeks ago remains intact but EUR is deemed to have moved into a consolidation phase and is expected to trade sideways between 1.2240 and 1.2450”.