EUR/USD still targets 1.0870/75 – UOB

EUR/USD stays poised for a test of the 1.0870/75 band in the next 1-3 weeks, suggested FX Strategists at UOB Group.

Key Quotes

“Instead of pushing higher as expected, EUR traded mostly sideways. The recent upward pressure has eased and EUR has likely moved into a consolidation phase and is expected to trade sideways from here, likely between 1.0755 and 1.0810”.

“EUR traded within a tight range yesterday and closed on a weak note. While upward pressure is waning, another attempt to move towards 1.0870/75 (last November’s high) could not be ruled out just yet even though the odds for such a move are not high. On the downside, EUR has to move clearly below 1.0735 to indicate that a short-term top in place and for the start of a pull-back towards 1.0680”.