EUR/USD likely moved into a consolidative phase – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted EUR/USD is now likely to trade within the 1.0100 and 1.0285 range in the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that ‘the choppy price actions appear to be part of a consolidation phase’ and we expected EUR to ‘trade between 1.0135 and 1.0235’. EUR subsequently rose briefly to 1.0254, plummeted to 1.0144 before rebounding to close at 1.0218 (+0.22%). We continue to view the price actions as part of a consolidation and expect EUR to trade between 1.0160 and 1.0260 for today.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (28 Jul, spot at 1.0205) where the current movement in EUR appears to be part of a consolidation phase and it is likely to trade between 1.0100 and 1.0285. EUR traded in a relatively choppy manner the past couple of days but it has stayed within the expected range. In other words, there is no change in our view for now.”