EUR/USD: Upside bias running out of steam? – UOB

Pablo Piovano FXStreet

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group note the upside momentum in EUR/USD appears to be losing some traction.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the price actions appear to be part of a consolidation phase’ and we expected EUR to ‘trade sideways between 1.0780 and 1.0870’. EUR subsequently traded within a range of 1.0800/1.0873 before closing at 1.0816 (-0.11%). The price actions still appear to be consolidative and we continue to expect EUR to trade sideways, likely between 1.0790 and 1.0860.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (16 Jan, spot at 1.0825). As highlighted, upward momentum is easing and a break of 1.0760 (no change in ‘strong support’ level) would indicate that EUR could consolidate first before making another attempt to advance toward the resistance at 1.0900 later on.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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