EUR/USD clings to the consolidation theme near term – UOB

FX Strategists at UOB Group see no changes to the consolidative phase in EUR/USD for the time being.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the bias for today is on the downside’ but ‘a sustained drop below the major support at 1.0950 is unlikely’. EUR subsequently dipped to 1.0964 before rebounding to close little changed at 1.0996 (-0.07%). The underlying tone has firmed somewhat and EUR could edge higher today. However, any advance is expected to face solid resistance at 1.1045. Support is at 1.0985 followed by 1.0965.”

Next 1-3 weeks: “On Monday (21 Mar, spot at 1.1040), we highlighted that EUR ‘appears to have moved into a consolidation phase and is likely to trade between 1.0950 and 1.1150’. EUR traded in a relatively quiet manner the past few days and we continue to expect EUR to consolidate. That said, we have narrowed the expected range to 1.0950/1.1110.”