EUR/USD now faces further consolidation – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang expected EUR/USD to navigate within the 1.0690-1.0820 range for the time being.

Key Quotes

24-hour view: We highlighted yesterday that EUR could rebound further but “it is highly unlikely to reach the major resistance at 1.0820.” We added, “there is another resistance at 1.0780.”. Our expectations did not quite turn out as EUR dipped to 1.0704, rebounded to 1.0768 before ending the day little changed at 1.0752 (+0.04%). Slightly firm momentum indicators continue to suggest that EUR could rebound further. However, the major resistance at 1.0820 is still likely out of reach. Support is at 1.0735, followed by 1.0715. 

Next 1-3 weeks: There is not much to add to our update from yesterday (12 Sep, spot at 1.0750). As highlighted, the recent EUR weakness had stabilised. From here, EUR is likely to trade in a range, probably between 1.0690 and 1.0820.