EUR/USD moved into a consolidation phase – UOB

In opinion of FX Strategists at UOB Group, EUR/USD is now seen navigating within 1.16 and 1.19.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the rapid pull-back has room to extend lower but for today, the strong support at 1.1700 is likely safe’. However, USD dropped to 1.1694 before rebounding quickly. Downward pressure has eased and for today, EUR is likely to consolidate and trade between 1.1725 and 1.1820.”

Next 1-3 weeks: “We pointed out yesterday that ‘risk of short-term top has increased further but confirmation is only upon a breach of 1.1700’. EUR subsequently breached 1.1700 but rebounded quickly after touching 1.1694. The break of the ‘strong support’ at 1.1700 indicates that the positive phase that started about 3 weeks ago has run its course. The current movement is viewed as the early stages of a consolidation phase. For the next couple weeks, EUR is likely to consolidate and trade between 1.1600 and 1.1900.”