EUR/USD now moved to a consolidative phase – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted EUR/USD is now seen navigating the 1.0625-1.0785 range.

Key Quotes

24-hour view: “We expected EUR to ‘consolidate and trade between 1.0690 and 1.0760’ yesterday. EUR subsequently traded between 1.0682 and 1.0751. The underlying tone has softened somewhat and EUR is likely to edge lower. However, a sustained drop below 1.0650 is unlikely (next support is at 1.0625). Resistance is at 1.0715 followed by 1.0745.”

Next 1-3 weeks: “Our latest narrative was from last Friday (03 Jun, spot at 1.0745) where EUR has to break above 1.0800 before further advance is likely. Yesterday, EUR dipped to a low of 1.0682. While our ‘strong support’ level at 1.0675 is not breached, the build-up in momentum has fizzled out. In other words, EUR does not appear to be ready to move above 1.0800 just yet. From here, EUR could trade between 1.0625 and 1.0785.”