According to strategists at UOB Group, EUR/USD should stick to its current consolidative pattern in the next 1-3 weeks, likely between 1.0420 and 1.0620.
“EUR edged above the strong 1.0620 resistance once again but eased off quickly after touching a high of 1.0626 yesterday”.
“The price action is line with our expectation wherein we view the current movement as part of a 1.0420/1.0620 consolidation range”.
“That said, the shorter term undertone is still positive and further attempts to move higher would not be surprising but 1.0620 is expected to continue to offer solid resistance (followed closely by another major resistance zone near 1.0650/70). On the downside, solid support is at 1.0505 (stronger level near 1.0470)”.