EUR/USD would likely move within a consolidative theme – UOB

EUR/USD is now seen trading between 1.0180 and 1.0379 in the next weeks, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Our view for EUR to ‘weaken further’ was incorrect as it rebounded strongly to a high of 1.0307 before closing on a firm note at 1.0302 (+0.60%). The rebound appears to have scope to extend but the major resistance at 1.0375 is unlikely to come into view (there is another strong resistance at 1.0325). Support is at 1.0280, a breach of 1.0260 would indicate EUR is not advancing further.”

Next 1-3 weeks: “We highlighted yesterday (22 Nov, spot at 1.0240) that the pullback in EUR could extend to 1.0150. We did not expect the strong rebound to a high of 1.0307. While our ‘strong resistance’ level at 1.0325 is not breached, downward momentum has eased considerably. In other words, instead of a deeper pullback, the current price movement is likely part of a broad consolidation phase and EUR is more likely to trade within a range of 1.0180/1.0375 for the time being.”