FX Strategists at UOB Group see EUR/USD extending the consolidation for the time being.

24-hour view: “EUR traded sideways between 1.1018 and 1.1056 last Friday, narrower than our expected range of 1.0095/1.1060. Momentum indicators are mostly ‘neutral’ which suggest EUR could continue to trade sideways for now. Expected range for today, 1.1000/1.1050”.

Next 1-3 weeks: “EUR tested the minor 1.1080 resistance (high of 1.1084) before dropping back quickly to end the day unchanged at 1.1033. The price action bolstered our view from yesterday (05 Sep, spot at 1.1035) wherein the current movement is viewed as the “early stages of a consolidation phase”. In other words, we continue to expect EUR to trade sideways between 1.0950 and 1.1110”.