EUR/USD sticks to the consolidative phase – UOB

According to FX Strategists at UOB Group, EUR/USD is expected to keep the 1.1555-1.1670 range unchanged for the time being.

Key Quotes

24-hour view: “We highlighted yesterday that ‘despite the decline, downward momentum has not improved by all that much’. We added, EUR ‘could dip to 1.1580 first before a rebound can be expected’. However, EUR rose to 1.1625 first before dropping back down to 1.1583. The bias from here is on the downside but momentum is still not strong. A dip below 1.1580 would not be surprising but the major support at 1.1555 is unlikely to come under threat. Resistance is at 1.1610 followed by 1.1625.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (26 Oct, spot at 1.1605). As highlighted, the recent EUR strength has run its course. EUR has likely moved into a consolidation phase and is expected to trade between 1.1555 and 1.1670 for now.”