EUR/USD now faces some consolidation – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, EUR/USD has now moved into a consolidation theme, likely between 1.16 and 1.19.

Key Quotes

24-hour view: “EUR dropped to 1.1719 yesterday before rebounding quickly to an overnight high of 1.1806. The registered range is relatively close to our expected range of 1.1725/1.1820. The daily closing in NY (1.1800, +0.33%) is on the strong side and the bias for today is for EUR to edge higher towards 1.1840 (minor resistance is at 1.1820). Support is at 1.1775 followed by 1.1740.”

Next 1-3 weeks: “We pointed out yesterday that ‘risk of short-term top has increased further but confirmation is only upon a breach of 1.1700’. EUR subsequently breached 1.1700 but rebounded quickly after touching 1.1694. The break of the ‘strong support’ at 1.1700 indicates that the positive phase that started about 3 weeks ago has run its course. The current movement is viewed as the early stages of a consolidation phase. For the next couple weeks, EUR is likely to consolidate and trade between 1.1600 and 1.1900.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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