EUR/USD seen extending the consolidative move – UOB

Strategists at UOB Group suggested EUR/USD could likely remain within the ongoing consolidation for the time being.

Key Quotes

240-hour view: “Yesterday, we were of the view that the soft underlying tone could lead to EUR trading at a lower range of 1.1260/1.1315. EUR subsequently traded in a subdued manner between 1.1267 and 1.1310 before ending the day little changed at 1.1277 (-0.05%). Momentum indicators are still mostly ‘neutral’ and EUR is expected to continue to trade sideways for today, still likely within a 1.1260/1.1315 range”.

Next 1-3 weeks: “As indicated, last week’s 1.1412 high is deemed as a short-term top and EUR has likely moved into a ‘sideway-trading phase’ and is expected to trade within a relatively broad range of 1.1200/1.1370. Near-term, the bias is tilted to the downside but in view of the lackluster momentum, any weakness is unlikely to move clearly below 1.1200. Looking ahead, if EUR were to continue to trade around current levels, the expected range would narrow in the coming days”.