EUR/USD keeps the consolidation intact – UOB

EUR/USD is seen extending its consolidative theme for the next 1-3 weeks, suggested FX Strategists at UOB Group.

Key Quotes

“The sudden increase in volatility sees EUR trading in a wide 1.0452/1.0622 range yesterday. The rather strong daily closing suggests further upside pressure and a break above 1.0620/25 (this level was tested thrice within the last week) could lead to a rapid rise to the major resistance zone at 1.0650/70”.

“EUR registered a range of 1.0452/1.0622 yesterday, which almost covers the whole of our expected 1 to 3 weeks consolidation range of 1.0420/1.0620 (first indicated last Thursday). At this stage, there is no pre-indication that EUR is ready stage a ‘break-out’. That said, the undertone is mildly positive and a break above 1.0620/25 could lead to a move higher to test the major resistance zone near 1.0650/70”.