EUR/USD consolidative between 1.0500 and 1.0680 – UOB

FX Strategists at UOB Group noted the pair remains poised to extend its sideline theme between 1.0500 and 1.0680 in the near term.

Key Quotes

“Instead of trading sideways as expected, EUR staged a brief rally and hit a high of 1.0630. The rapid pullback suggests that a short-term top is in place. For today, as long as 1.0630 is not taken out (minor resistance at 1.0605), EUR is expected to drift lower towards 1.0540. While a dip below this level would not be surprising, the next level at 1.0500 is a strong support and is unlikely to yield so easily”.

“The short-term downward pressure has eased with the move back above 1.0620 yesterday (high of 1.0630). Indicators are mostly flat now and EUR has likely moved into a consolidation range, expected to be between 1.0500 and 1.0680. The price action near the extremes of the range should provide better clues of the next sustained directional move but at this stage, the outlook is unclear”.