In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, EUR/USD should keep the trade within the 1.0800-1.0930 in the next few weeks.
24-hour view: “Yesterday, we stated that EUR ‘is likely to trade with a downward bias but it is unlikely to challenge the major support at 1.0800’. In London trade, EUR dropped sharply but briefly to 1.0800 before rebounding. EUR appears to have moved into a consolidation phase and it is likely to trade between 1.0815 and 1.0900 today.”
Next 1-3 weeks: “We noted on Monday (30 Jan, spot at 1.0870) that EUR appears to have entered a consolidation phase and it is likely to trade between 1.0800 and 1.0930 for the time being. Yesterday, EUR dropped briefly to 1.0800 before rebounding. There is no change in our view for now. Looking ahead, the risk of EUR breaking 1.0800 first appears to be greater and if this were to happen, it could lead to a pullback toward the next major support at 1.0720.”