Further consolidation remains on the cards for EUR/USD in the next weeks, this time between 1.0430 and 1.0630, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “Our expectations for EUR to ‘retest the 1.0605 level’ yesterday was incorrect as it dropped sharply to 1.0481 before rebounding. We view the movement as part of a consolidation phase and we expect EUR to trade between 1.0470 and 1.0560 for today.”
Next 1-3 weeks: “We have expected EUR to consolidate since late last week. EUR traded in a relatively choppy manner the last few days but has stayed within a range. There is still clear direction for now and we continue to expect EUR to consolidate albeit within a narrower range of 1.0430/1.0630 (vs 1.0390/1.0650 previously). Overall, EUR has to break out of the expected range before a sustained directional move is likely.”
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