According to FX Strategists at UOB Group, EUR/USD could now trade within the 1.1240-1.1395 range in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for EUR to advance to 1.1390 before the current upward pressure should ease’. EUR subsequently rose to 1.1379 before falling sharply to 1.1278 NY hours. The rapid drop appears to be overdone and EUR is unlikely to weaken much further. For today, EUR is more likely to consolidate and trade between 1.1275 and 1.1345.”

Next 1-3 weeks: “Our view from yesterday (03 Jan, spot at 1.1370) where EUR is likely to trade with an upward bias towards 1.1415 was proven wrong quickly as it dropped below of ‘strong support’ level of 1.1310 (low of 1.1278). While downward momentum has improved a tad, the outlook for EUR is unclear for now. From here, EUR could trade between 1.1240 and 1.1395.”