EUR/USD likely moved into a consolidation phase – UOB

FX Strategists at UOB Group now see EUR/USD navigating the 1.1340-1.1500 range in the next weeks.

Key Quotes

24-hour view: “While we highlighted yesterday that the recent consolidation phase ‘appears to be drawing to a close’, the subsequent wild swings came as a surprise. EUR initially plummeted to 1.1373 before lifting to crack the strong resistance at 1.1485 (high has been 1.1495). The advance was however short-lived as EUR plummeted back down to end the day little changed at 1.1427 (+0.04%). The wild swings have resulted in a mixed outlook and EUR could continue to trade in a choppy manner, likely between 1.1370 and 1.1470.”

Next 1-3 weeks: “We have held the same view since Monday (07 Feb, spot at 1.1450) where the recent rally in EUR has to break the major resistance at 1.1485 before a move to 1.1520 can be expected. EUR swung wildly yesterday but while it moved above 1.1485, the advance was short-lived as it dropped sharply after touching a high of 1.1495. The risk of EUR moving to 1.1520 has dissipated. The outlook is mixed and EUR is likely to trade between 1.1340 and 1.1500 for now.”