EUR/USD sticks to the consolidative tone – UOB

EUR/USD is still seen within the 1.0100-1.0260 range in the next weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘upward momentum is beginning to build but it is left to be seen if EUR could break the major resistance at 1.0300’. The major resistance at 1.0300 remains intact as EUR fell sharply from 1.0293 (low has been 1.0162). The rapid drop could extend but is unlikely to threaten the major support at 1.0100 (there is another support at 1.0130). On the upside, a breach of 1.0210 (minor resistance is at 1.0195) would indicate that the current downward pressure has eased.”

Next 1-3 weeks: “We highlighted yesterday that the risk for EUR is shifting to the upside but EUR has to break 1.0300 first before a sustained advance is likely. EUR did not break 1.0300 as it dropped sharply from 1.0293. The build-up in upward momentum fizzled out quickly. The price actions suggest that EUR is still in a consolidation phase and it is likely to trade between 1.0100 and 1.0260. Looking ahead, EUR has to break the major support at 1.0100 before a sustained decline is likely.”