EUR/USD now seen navigating within 1.0600-1.0800 – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest EUR/USD is expected to maintain the consolidative range unchanged for the time being.

Key Quotes

24-hour view: “We expected EUR to test 1.0725 yesterday but we were of the view that ‘the next resistance at 1.0760 is not expected to come under threat’. Our view was not wrong as EUR rose to 1.0730 before closing at 1.0719 (+0.50%). While the advance does not possess a lot of momentum, there is room for EUR to rise to 1.0760 before a pullback is likely. The major resistance at 1.0800 is unlikely to come into view. Support is at 1.0700, a breach of 1.0680 would indicate EUR is not advancing further.”

Next 1-3 weeks: “Yesterday (20 Mar, spot at 1.0680), we indicated that EUR appears to be trading in a consolidation phase, likely in a broad range between 1.0600 and 1.0800. We continue to hold the same even though the firm short-term outlook suggest EUR is likely to test 1.0800 in the next few days. At this stage, we do not expect a sustained rise above this level.”