In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, EUR/USD has now likely moved into a consolidative phase.

Key Quotes

24-hour view: “We expected ‘further EUR strength’ yesterday. However, EUR plummeted to a low of 1.0458. The oversold decline has scope to extend to 1.0440 even though a sustained decline below this level is unlikely. The next support at 1.0390 is unlikely to come into the picture. Resistance is at 1.0500 followed by 1.0530.”

Next 1-3 weeks: “Yesterday (18 May, spot at 1.0545), we held the view that the corrective rebound in EUR could extend to 1.0600. We did not expect the subsequent sharp drop to a low of 1.0458 during NY session. While our ‘strong support’ level at 1.0440 is not breached, the build-up in momentum has fizzled out quickly. The sharp but short-lived swings the past couple of days have resulted in a mixed outlook and EUR could trade within a range of 1.0390/1.0560 for now.”