FX Strategists at UOB Group noted EUR/USD is expected to keep navigating between 1.1660 and 1.1880 in the next weeks.
Key Quotes
24-hour view: “Yesterday, we highlighted that the ‘rebound in EUR has room to extend higher towards 1.1835’. We added, ‘for today, a move beyond the major resistance at 1.1880 would come as a surprise’. EUR subsequently rose to a high of 1.1864 before retreating quickly. Upward pressure has more or less dissipated and the bias for today is tilted to the downside towards 1.1765 (minor support is at 1.1790). For now, a sustained decline below this level is unlikely. Resistance is at 1.1840 followed by 1.1865.”
Next 1-3 weeks: “There is not much to add to our update from Tuesday (11 Aug, spot at 1.1740). As highlighted, while EUR has likely formed a short-term top at 1.1915, any weakness in EUR is likely to be slow and is viewed as part of a broad 1.1600/1.1880 range. EUR traded in a relatively quiet manner over the past couple of days and for now, we continue to hold the same view wherein EUR is in a consolidation phase and is likely to trade sideways, albeit within a narrower range of 1.1660/1.1880 range.”
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