EUR/USD attempts some consolidation near term – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note EUR/USD could face some consolidative mood ahead of potential extra losses.

Key Quotes

24-hour view: Our view for EUR to retest the 1.0765 level did not materialise as it traded in a tight range between 1.0792 and 1.0820. The price actions are likely part of a consolidation phase. Today, we expect EUR to trade in a range, probably between 1.0800 and 1.0845.

Next 1-3 weeks: We continue to hold the same view as yesterday (28 Aug, spot at 1.0795). As highlighted, EUR could consolidate for a couple of days before declining to 1.0730. However, if EUR breaches the ‘strong resistance’ level at 1.0875 (no change in level from yesterday), it would indicate that the weakness in EUR that started early last week has stabilised.