EUR/USD faces further consolidation near term – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang see EUR/USD navigating within the 1.0530-1.0700 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted last Friday that ‘there is scope for EUR to weaken further but any decline is likely part of a lower trading range of 1.0565/1.0655’. EUR subsequently traded in a quiet manner between 1.0586 and 1.0638. The price actions appear to be part of a consolidation phase. Today, we expect EUR to trade sideways within a range of 1.0585/1.0650.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (03 Mar, spot at 1.0605). As highlighted, instead of rebounding further, EUR is likely to consolidate and trade between 1.0530 and 1.0700 for now.”