EUR/USD now seen within a consolidative mode – UOB
|According to FX Strategists at UOB Group, EUR/USD has now moved into a consolidative phase.
Key Quotes
24-hour view: “We highlighted last Friday that ‘indicators are turning neutral and EUR is likely to consolidate and trade sideways’. The sudden surge in upward momentum came as a surprise as EUR soared to 1.1330. The rapid rise appears to be overdone and EUR is unlikely to strengthen further. For today, EUR is expected to trade sideways between 1.1260 and 1.1325.”
Next 1-3 weeks: “We have expected EUR to weaken since early last. In our latest narrative from last Thursday (25 Nov, spot at 1.1200), we highlighted that EUR could ‘weaken to 1.1160’. We added, EUR ‘is expected to stay weak as long as it does not move above 1.1270’. We did not anticipate the manner by which EUR jumped by +0.99% (NY close of 1.1317). The break of 1.1270 indicates that EUR weakness has come to an end. The current movement is viewed as part of a consolidation phase and EUR is likely to trade between 1.1220 and 1.1360 for now.”
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