EUR/USD seen between 1.2350/1.2410 very near term – UOB

The pair is expected to navigate within the 1.2350/1.2410 range in the very near term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR registered a range of 1.2341/1.2397 yesterday, close to our expected 1.2340/1.2400 consolidation range. The consolidation phase appears incomplete and further range trading is expected, albeit likely at a higher range of 1.2350/1.2410”.

Next 1-3 weeks: “We highlighted yesterday that “while upward momentum is still not as strong as preferred, the current short-term strength has scope to extend further to the next resistance at 1.2425”. There is no change to the view as EUR subsequently hit a high of 1.2413 before easing off. As long as the ‘key support’ at 1.2310 is intact, we continue to see chance for another push higher towards 1.2425. As noted previously, this is a rather critical resistance as a clear break of this level would increase the odds for a move beyond last month’s peak at 1.2475. In view of the current lackluster momentum, we feel that it is premature to anticipate such a move. All that said, in order to maintain the current mild upward pressure, EUR should move higher quickly as a prolonged consolidation at these levels would lead to a rapid loss in momentum”.