In view of FX Strategists at UOB Group, EUR/USD is seen within a consolidative range in the near term.
24-hour view: “Expectation for EUR to “weaken further to 1.0970” was incorrect as EUR soared after dropping briefly to 1.0988. While the sudden rise appears to be running ahead of itself, there is room for EUR to edge higher from here. That said, any advance is expected to face solid resistance at 1.1110 (minor resistance is at 1.1095). Support is at 1.1040 followed by 1.1015. The 1.0988 low is expected to be ‘safe’ for today”.
Next 1-3 weeks: “As highlighted, despite the relatively sharp drop on Monday (16 Sep), we continue to expect EUR to “trade sideways”. The subsequent rapid bounce in EUR reinforces our view and we continue to expect EUR to trade sideways within a broad 1.0925/1.1130 range for now. Looking forward, EUR has to register a NY close out of the expected range before a more sustained directional price action can be expected”.
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