EUR/USD still looks consolidative but… - UOB

FX Strategists at UOB Group see EUR/USD in a 1.1200-1.1300 range although attention has also shifted to 1.1160.

Key Quotes

24-hour view: “After a series of ‘inside days’, EUR attempted to break out on Mon but eventually settled back within recent ranges, pivoting in a small range around 1.12. Until a clearer direction emerges, we expect sideways consolidation in an otherwise narrow 1.1175 – 1.1230 intraday range”.

Next 1-3 weeks: “. While upwards momentum appears strong, we are still not convinced to transit into a ‘positive phase’ as yet. As such, EUR is likely to consolidate recent gains and trades in a higher range between 1.1200 and 1.1300. A drop below 1.1160 indicates that the recent strength in EUR has run its course and may be resuming its downtrend”.