EUR/USD sticks to its consolidation theme – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang expect EUR/USD to keep the side-lined trading within the 1.0390-1.0650 range in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘bias for EUR is tilted to the downside but any weakness is unlikely to challenge 1.0470’. We did not expect the spike in volatility as EUR dropped briefly to 1.0467, snapped back up to 1.0605 before easing off. Upward momentum is beginning to build and there room for EUR to retest the 1.0605 level. For today, the major resistance at 1.0650 is not expected to come under threat. On the downside, a breach of 1.0515 (minor support is at 1.0540) would indicate that the build-up in upward momentum has fizzled out.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (22 Jun, spot at 1.0530). As highlighted, EUR is still consolidating and is likely to trade within a range of 1.0390/1.0650 for now.”