EUR/USD: Room for further consolidation near term – UOB

EUR/USD keeps pointing to extra range bound trade in the short-term horizon, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: We highlighted yesterday that “while downward momentum has not increased much, the bias for today is still tilted to the downside.” We added, “However, any decline is unlikely to reach the major support at 1.0510.” Our view was not wrong as EUR dipped to 1.0520 and then rebounded to end the day little changed at 1.0560 (-0.03%). The rebound has scope to extend to 1.0595. The next resistance at 1.0620 is unlikely to come under threat. Support is at 1.0545, followed by 1.0530. 

Next 1-3 weeks: We continue to hold the same view as two days ago (25 Oct, spot at 1.0595), wherein EUR is likely to trade in a range of 1.0510/1.0690 for now.