EUR/USD: More likely to consolidate within a 1.0455/1.0515 range – UOB Group

Instead of continuing to rise, Euro (EUR) is more likely to consolidate within a 1.0455/1.0515 range vs US Dollar (USD). In the longer run, outlook for EUR is positive, with a technical target of 1.0530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

EUR is positive, with a technical target of 1.0530

24-HOUR VIEW: "Following the strong rise in EUR last Thursday, we pointed out on Friday that 'the rapid rise appears to be overdone.' However, we held the view that 'there is scope for EUR to test 1.0495.' We were also of the view that 'the major resistance at 1.0530 is unlikely to come under threat.' Our view was not wrong, as USD rose to 1.0514, easing off to close at 1.0491 (+0.26%). The combination of slowing momentum and overbought conditions suggests that instead of continuing to rise, EUR is more likely to consolidate within a 1.0455/1.0515 range today."

1-3 WEEKS VIEW: "Our update from last Friday (14 Feb, spot at 1.0460) remains valid. As highlighted, 'the outlook for EUR is positive, with a technical target of 1.0530.' To keep the momentum going, EUR must remain above 1.0400 (‘strong support’ level was at 1.0365 last Friday). Note that above 1.0530, there is another significant resistance level at 1.0560."