EUR/USD could attempt some consolidation – UOB
|According to FX Strategists at UOB Group, EUR/USD could likely move into a consolidative phase unless it resumes the upside in the near-term.
Key Quotes
24-hour view: “In line with our expectation, EUR traded sideways yesterday even though the registered range of 1.1031/1.1064 is narrower than our expected range of 1.1035/1.1085. Momentum indicators are still mostly neutral and the current movement is still viewed as part of a consolidation phase. In other words, we continue to expect EUR to trade sideways, likely between 1.1030 and 1.1070.”
Next 1-3 weeks: “EUR dropped to a low of 1.1031 before ending the day on a soft note at 1.1042 (-0.14%). The pick-up in momentum from last Friday’s (31 Jan) strong surge to 1.1096 has eased considerably. From here, unless EUR recover above 1.1070 within these 1 to 2 days, a breach of 1.1015 (no change in ‘strong support’ level) would indicate that our view from Monday (03 Feb, spot at 1.1090) for the rebound in EUR to extend further is premature. To put it another way, unless EUR recover soon, the current price action looks more akin to be part of a consolidation phase instead of a strong rebound.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.