According to FX Strategists at UOB Group, EUR/USD still faces a mixed outlook in the next weeks.

Key Quotes

24-hour view: “Our expectations for the advance from last Friday to extend were incorrect as EUR plummeted briefly to 1.1283 before rebounding sharply to close at 1.1325 (-0.31%). The volatile price actions have resulted in a mixed outlook. For today, EUR could continue to trade in a choppy manner, likely between 1.1295 and 1.1365.”

Next 1-3 weeks: “One week ago (04 Jan, spot at 1.1305), we highlighted that the outlook for EUR is unclear and we expected it to trade between 1.1240 and 1.1395. EUR traded in a choppy manner the last several days and there is no change in our view for now.”