According to FX Strategists at UOB Group, EUR/USD is now expected to trade in a volatile fashion and within the 10870-1.1180 range in the next weeks.
Key Quotes
24-hour view: “We expected EUR to ‘consolidate and trade between 1.1000 and 1.1100’ yesterday. EUR subsequently popped to 1.1120, dropped to 1.0975 before closing at 1.0983 (-0.83%). The underlying tone appears to have softened and EUR is likely to drift lower. That said, any weakness is expected to face solid support at 1.0935 (minor support is at 1.0975). Resistance is at 1.1045 followed by 1.1075.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (10 Mar, spot 1.1055). As highlighted, the recent multi-week weak phase in EUR has come to an end and EUR could trade in a volatile manner between 1.0870 and 1.1180 for now.”