EUR/USD faces consolidation within 0.9630-0.9950 – UOB

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Forex Strategists UOB Group, Lee Sue Ann and Quek Ser Leang, point out that the EUR/USD trade between 0.9630 and 0.9950 in the coming weeks.

24 hour outlook: “We expected the EUR to trade sideways between 0.9620 and 0.9750 yesterday. Our view was incorrect as the euro fell as low as 0.9634 before rising to close at 0.9814 (+0.82%). The euro extended its advance in early trade Asian. Upside momentum likely to improve to 0.9880 before a pullback. The next resistance at 0.9950 does not seem to be in sight. To the downside, a break of 0.9740 (minor support is at 0.9780) would indicate that the current bullish pressure has subsided.”

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Next 1-3 weeks: “We have had a negative view on the euro for more than two weeks. After the euro fell to 0.9530 and rebounded strongly, yesterday (Sep 29, pair at 0.9705) we indicated that there was still a small chance that the euro fell to 0.9500.The Euro subsequently rallied and broke above our ‘strong resistance’ level at 0.9750.The breakout of the ‘strong resistance’ level indicates that dollar weakness has stabilized. The euro appears to have entered a consolidation phase and is likely to trade between 0.9630 and 0.9950 for now..”

Source: Fx Street

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