EUR/USD: No change to the consolidative stance – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang expect EUR/USD to remain side-lined for the time being, likely between 1.0100 and 1.0260.

Key Quotes

24-hour view: “Yesterday, we expected the decline in EUR to extend but we were of the view that ‘the major support at 1.0100 is unlikely to come under threat’. We indicated, ‘there is another support at 1.0130’. During NY session, EUR dropped briefly to 1.0121 before rebounding to end the day unchanged at 1.0164. Downward pressure has eased and EUR is unlikely to weaken further. For today, EUR is more likely to trade sideways between 1.0130 and 1.0210.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (03 Aug, spot at 1.0165). As highlighted, EUR is still in a consolidation phase and it is likely to trade between 1.0100 and 1.0260. Looking ahead, EUR has to break the major support at 1.0100 before a sustained decline is likely.”