EUR/USD rally is taking a pause – UOB

In opinion of FX Strategists at UOB Group, spot keeps the bullish stance for the time being, while some consolidation is not ruled out.

Key Quotes

24-hour view: “EUR traded within a 1.2333/1.2453 range yesterday, much wider than our expected 1.2340/1.2425 consolidation range. Despite the rapid swings, EUR closed only marginally higher and indicators are mostly ‘flat’. Further sideway trading is expected, likely not moving much out of the 1.2333/1.2453 range registered yesterday”.

Next 1-3 weeks: “While upward momentum is beginning to wane, we continue to view the current movement as part of a short-term consolidation phase and another push higher towards the revised ‘target’ of 1.2570 is not ruled out just yet. That said, EUR has to move higher within the next couple of days or a prolonged consolidation around these level would increase the risk of a top quickly. Conversely, a break of 1.2290 (‘stop-loss’ level unchanged) would indicate that the bullish phase that started about two weeks ago has ended”.