EUR/USD now points to some consolidation – UOB

Pablo Piovano FXStreet

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest EUR/USD is now seen within the 1.0680-1.0880 range.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways between 1.0790 and 1.0860’ yesterday. However, EUR rose briefly to 1.0869, dropped sharply to 1.0773 and closed at 1.0788 (-0.26%). The rapid decline in EUR has scope to extend but it is unlikely to break 1.0730 (there is another support at 1.0760). Resistance is at 1.0815, followed by 1.0840.”

Next 1-3 weeks: “Two days ago (16 Jan, spot at 1.0825), we highlighted that upward momentum is easing and a break of our ‘strong support’ at 1.0760 would indicate that EUR could consolidate first before attempting to advance toward the resistance at 1.0900 later on. EUR dropped to a low of 1.0773 in NY trade and while our ‘strong support’ level was not breached, upward momentum has more or less faded. In other words, the EUR strength from a week ago has come to an end and EUR is likely to consolidate between 1.0680 and 1.0880 for the time being.”

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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