EUR/USD faces further consolidation near term – UOB

EUR/USD is expected to maintain the trade within 1.0560-1.0800 in the next few weeks, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Our expectations for EUR to edge higher did not materialize as it traded in a 1.0677/1.0749 range before closing largely unchanged at 1.0732 (+0.03%). The underlying tone still appears to be slightly firm and we continue to see room for EUR to edge higher. That said, the major resistance at 1.0800 is not expected to come under threat (there is another resistance level at 1.0770). Support is at 1.0705, a breach of 1.0680 would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “On Monday (13 Mar, spot at 1.0685), we highlighted that the current price action is likely part of a consolidation range and we held the view that EUR is likely to trade between 1.0560 and 1.0800 for the time being. We continue to hold the same view. That said, the short-term underlying tone appears to be firm and in the next 1-2 days, the risk is for EUR to edge higher and test 1.0800. At this stage, a sustained rise above 1.0800 is unlikely.”