EUR/USD faces further consolidation near term – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted EUR/USD is still seen within the 1.0635-1.0785 range in the next weeks.

Key Quotes

24-hour view: “We held the view yesterday that EUR ‘is likely to edge lower but a sustained drop below 1.0650 is unlikely’. Our view was not wrong as EUR dropped to 1.0650 before rebounding to close little changed at 1.0699 (0.05%). Downward pressure has eased and EUR is likely to trade sideways for today, expected to be within a range of 1.0665/1.0725.”

Next 1-3 weeks: “Our view from yesterday (07 Jun, spot at 1.0695) still stands. As highlighted, the recent build-up in upward momentum has fizzled out and EUR is not ready to move above 1.0800 just yet. Overall, EUR is likely trade 1.0625 and 1.0785 for now.”