EUR/USD: The pair enters a consolidation phase – UOB Group
|Room for the Euro (EUR) to rise to 1.0760 before levelling off is likely. EUR has likely entered a consolidation phase; for the time being, it is likely to trade between 1.0670 and 1.0800, UOB Group analysts write.
Euro to trade within the 1.0670-1.0800 range
24-HOUR VIEW: “We did not anticipate the strong rebound that sent EUR to a high of 1.0746; we were expecting range-trading. While the rapid advance is approaching overbought levels, there is room for EUR to rise to 1.0760 before levelling off is likely. The major resistance at 1.0800 is not expected to come under threat. On the downside, support levels are at 1.0715 and 1.0695.”
1-3 WEEKS VIEW: “We have held the view that EUR could retest the 1.0665 since early last week. After EUR fell to 1.0668 last Friday, we indicated yesterday (24 Jun, spot at 1.0695) that ‘while the bias for EUR remains on the downside, it must break clearly below 1.0665 before further decline can be expected.’ We also indicated that ‘a breach of 1.0740 would mean that the downward bias has faded.’ EUR then rebounded and broke above 1.0740 (high of 1.0746). The price action suggests that EUR has likely entered a consolidation phase. For the time being, it is likely to trade between 1.0670 and 1.0800.”
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