FX Strategists at UOB Group noted EUR/USD is likely to navigate between 1.1740 and 1.1930 in the next weeks.
Key Quotes
24-hour view: “Our expectation for EUR to ‘edge higher’ was incorrect as it dropped to 1.1770 before rebounding quickly and ended the day little changed at 1.1839 (-0.03%). The underlying tone has firmed somewhat and we see chance for EUR to grind higher towards 1.1865. The next resistance at 1.1895 is unlikely to come into the picture. Support is at 1.1810 followed by 1.1775.”
Next 1-3 weeks: “One week ago on Thursday (20 Aug, spot at 1.1845), we held the view that ‘the price action is viewed as the early stages of a consolidation phase’ and that EUR ‘is likely to trade between 1.1740 and 1.1950’. We subsequently detected a slight improvement in downward pressure and indicated that ‘risk of a break of the bottom of the range first is higher’. However, over the past few days, EUR traded sideways, roughly between 1.1770 and 1.1850. The price actions suggest that EUR is still in a consolidation phase. Only a daily closing out of the 1.1740/1.1930 range (narrowed by 1.1740/1.1950) would indicate that EUR is ready for a sustained directional move.”
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