More consolidation in the EUR/USD market is anticipated over the coming weeks, according to UOB Group economist Lee Sue Ann and markets strategist Quek Ser Leang.
Key Quotes 24-hour view: “Any rise is part of a 1.0740/1.0830 range,” notwithstanding our expectation that the euro would improve yesterday. Early in London trading, the EUR fell to a low of 1.0743 before edging up to 1.0799 and finally settling at 1.0796 (+0.34%). Although the upward trend has slightly picked up, it is unlikely that the EUR will challenge the next resistance around 1.0870, even if it does break above 1.0830. Support is located at 1.0775; a break of 1.0750 would mean the upward pressure is lessening at the moment.
Within the next three weeks: “We don’t have much to add to yesterday’s update” (27 Mar, spot at 1.0775). As was mentioned, the euro (EUR) appears to have entered a phase of consolidation and will probably trade between 1.0870 and 1.0680 for the time being.