EUR/USD keeps the consolidative theme near term – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted EUR/USD is expected to navigate within the 0.9940-1.0125 range in the next few weeks.

Key Quotes

24-hour view: “EUR traded between 0.9972 and 1.0078 yesterday, wider than our expected sideway-trading range of 0.9985/1.0060. The price actions offer no fresh clues and we expect EUR to trade within a range of 0.9980/1.0080 for today.”

Next 1-3 weeks: “Two days ago (30 Aug, spot at 0.9995), we highlighted that EUR is likely to consolidate and trade between 0.9900 and 1.0085. EUR rose to a high of 1.0078 yesterday and while upward momentum has improved somewhat, EUR does not appear to be ready to head higher in a sustained manner. That said, EUR could move above 1.0085 but the next resistance at 1.0125 is unlikely to come into the picture. Overall, the price action suggests EUR is still consolidating, albeit at a higher range of 0.9940/1.0125.”