The pair should remain within a 1.0800/1.0950 range in the next weeks, according to FX Strategists at UOB Group.
“Expectation for sideway-trading was wrong as EUR surged to high of 1.0934 after the release of US retail sales/CPI data on Friday. The strong daily closing suggests further upward pressure towards 1.0950/55 even though a sustained move above this level seems unlikely (next resistance at 1.0980)”.
“While EUR staged a surprisingly strong rebound last Friday, it is not enough to shift the current neutral outlook to bullish. That said, a move above the top of the expected 1.0800/1.0950 consolidation range would not be surprising but there is another major resistance nearer to 1.0980 and this level is unlikely to yield so easily. Support is at 1.0890 and last week’s low near 1.0835/40 is likely strong enough to hold, at least for the early part of this week”.
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