EUR/USD clings to the consolidative stance – UOB

FX Strategists at UOB Group see EUR/USD extending the side-lined theme between 1.1660 and 1.1880 in the next weeks.

Key Quotes

24-hour view: “Last Friday, we held the view that the bias for EUR ‘is tilted to the downside towards 1.1765’. However, EUR dipped to 1.1781 before rebounding strongly. Despite the rapid bounce, upward momentum has not improved by much. That said, there is room for EUR to edge higher and test the 1.1880 resistance. For today, a sustained rise above this level is not expected (next resistance is at 1.1915). Support is at 1.1815 but only a move below 1.1790 would indicate the current upward pressure has eased.”

Next 1-3 weeks: “We continue to hold the same view from last Thursday (13 Aug, spot at 1.1795) wherein EUR is ‘still in a consolidation phase and is likely to trade sideways’. That said, upward momentum is beginning to tick up as EUR approaches the top of expected consolidation range of 1.1660/1.1880. While EUR could edge above 1.1880, only a NY closing above 1.1915 would indicate the start of fresh positive phase. At this stage, the probability for such a move is not high.”