The Euro (EUR) is expected to consolidate between 1.0895 and 1.0960. EUR is still positive, but it has to surpass 1.1010 before further advance to 1.1070 can be expected, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

EUR to continue growing above 1.1010

24-HOUR VIEW: “Yesterday, we indicated ‘provided that EUR remains above 1.0910, it could retest the 1.1010 level before another pullback is likely.’ Our view was incorrect, as EUR pulled back directly to a low of 1.0902. EUR closed at 1.0930 (-0.20%). The current price action is likely part of a consolidation phase. Today, we expect EUR to trade between 1.0895 and 1.0960.”

1-3 WEEKS VIEW: “We indicated yesterday that EUR ‘is still positive, but it has to surpass 1.1010 before further advance to 1.1070 can be expected.’ We continue to hold the same view. On the downside, should EUR breach the ‘strong support’ at 1.0855 (no change in level from yesterday), it would mean that EUR is not ready to move above 1.1010.”