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EUR/USD consolidates in the short term – UOB

EUR/USD is expected to hold within 1.0560-1.0800 in the coming weeksas suggested by the economist UOB Group, Lee Sue Ann, and Market Strategist, Quek Ser Leang.

24 hour perspective: “Our expectations for the euro to rise failed to materialize as it traded in a 1.0677/1.0749 range before closing broadly unchanged at 1.0732 (+0.03%). The underlying tone remains slightly firm and we continue to see room for the euro to rise. That being said, the main resistance at 1.0800 is not expected to be challenged (there is another resistance level at 1.0770). Support is at 1.0705, a break of 1.0680 would indicate that the current slight bullish pressure has eased.”

Next 1-3 weeks: “On Monday (March 13, pair at 1.0685), we highlighted that current price developments are likely to be part of a consolidating range and we held the view that the Euro is likely to trade between 1.0560 and 1.0800 for now. We continue to be of the same view.That being said, the underlying tone in the short term appears to be firm and in the next 1-2 days, the risk is that the EUR will rise and test 1.0800. A sustained rally above 1.0800 is unlikely at this time.”

Source: Fx Street

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