EUR/USD still points to further consolidation – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang expect EUR/USD to remain side-lined within the 1.0100-1.0300 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted last Friday ‘the chance for EUR to break 1.0260 has increased’. However, instead of breaking 1.0260, EUR plunged to 1.0139 during NY session before rebounding to close at 1.0181 (-0.61%). The rapid decline appears to be running ahead of itself and EUR is unlikely to weaken much further. For today, EUR is likely to consolidate and trade between 1.0135 and 1.0205.”

Next 1-3 weeks: “Last Friday (05 Aug, spot at 1.0245), we highlighted that shorter-term upward momentum is beginning to build. We added, ‘EUR has to break 1.0300 before a sustained advance is likely’. EUR did not break 1.0300 as it plummeted to a low of 1.0139. The build-up in momentum fizzled out quickly. Overall, EUR does not appear to be ready to break out of the 1.0100/1.0300 range just yet and it could trade within this range for a while more.”