EUR/USD now faces some consolidation – UOB

FX Strategists at UOB Group now see EUR/USD moving into a consolidative phase within the 1.0770-1.0990 range.

Key Quotes

24-hour view: “EUR traded between 1.0803 and 1.0871, relatively close to our expected sideway-trading range of 1.0800/1.0875. The current movement is viewed as an on-going consolidation phase even though the firmed underlying tone suggests a higher trading range of 1.0820/1.0880.”

Next 1-3 weeks: “While we noted last Friday (21 Feb, spot at 1.0795) that “downward momentum appears to be struggling and EUR has to break the major 1.0770 support before a move to 1.0740 can be expected”, the sudden and sharp rebound that touched a high of 1.0863 came as a surprise. The break of the ‘strong resistance’ level at 1.0845 indicates that the weak phase in EUR that started in early February has ended. From here, EUR is deemed to have moved into a consolidation phase and is expected to trade sideways within a relatively broad range of 1.0770/1.0900.”