EUR/USD should move within a consolidative range – UOB

The pair’s stance remains neutral and is likely to trade sidelined in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of extending its decline (as expected yesterday), EUR traded sideways within a narrow range of 1.1582/1.1628. We continue to detect a slightly negative undertone and still see chance for EUR to drift lower and test the strong 1.1555 support. At this stage, a clear break below this level is not expected. Resistance is at 1.1645 but the stronger level is closer to 1.1675”.

Next 1-3 weeks: “EUR rebounded slightly after touching a low of 1.1582 yesterday. We continue to view last week’s 1.1733 peak as a short-term top and expect this level to remain intact for the next one week or so. The sharp decline from last Friday has room to extend lower but at this stage, we view any weakness as part of a 1.1520/1.1675 consolidation range and not the start of a sustained down-move”.