FX Strategists at UOB Group now expect EUR/USD to navigate within the 1.0950-1.1150 range in the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that EUR is ‘unlikely to strengthen much further’ and we expected it to ‘trade between 1.1055 and 1.1140’. However, EUR dropped sharply to 1.1001 before rebounding quickly. The price actions appear to be part of a consolidation phase. In other words, EUR is likely to trade sideways for today, expected to be within a range of 1.1005/1.1080.”

Next 1-3 weeks: “The sharp drop in EUR last Friday took out our ‘strong support’ level at 1.1025 (low of 1.1001). The breach of the ‘strong support’ has invalidated our view for EUR to advance to 1.1180. EUR appears to have moved into a consolidation phase and is likely to trade between 1.0950 and 1.1150.”