EUR/USD in consolidation phase between 1.0560 and 1.0800 – UOB

Lee Sue Ann, economist at UOB Group, and Quek Ser Leang, a market strategist, point out that the EUR/USD it will move between 1.0560 and 1.0800 in the next few weeks.

24 hour perspective: “Yesterday we signaled that the bullish momentum had improved, although not significantly. We expected the Euro to continue advancing to 1.0740, but we were of the opinion that the main resistance at 1.0800 would not be threatened. Our opinion was not wrong, as the Euro rose to 1.0748 , dipped to 1.0649 and then bounced to close at 1.0729 (+0.81%).Although the bullish momentum has not improved much, the euro is likely to continue to rise. However, the main resistance at 1.0800 is unlikely to be threatened. (there is minor resistance at 1.0770). Support is at 1.0690, a break of 1.0660 would suggest that the current bullish pressure has eased.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (March 13, pair at 1.0685). As we have highlighted, we view current price developments as part of a consolidation interval and we expect the euro to trade between 1.0560 and 1.0800 for now. That being said, the short-term underlying tone looks firm and in the next 1-2 days, the risk is that the EUR will rally and test 1.0800. A sustained rally above 1.0800 is unlikely at this time.”