FX Strategists at UOB Group suggested EUR/USD should remain side-lined in the next weeks.
24-hour view: “We expected EUR to ‘trade sideways between 1.0830 and 1.0900’ yesterday. EUR subsequently dipped to 1.0817 before snapping back up to 1.0880. While the current movement is still viewed as part of a consolidation phase, the underlying tone has firmed somewhat and the risk from here is tilted to the upside. That said, any advance is expected to face solid resistance at 1.0900 (next resistance is at 1.0925). Support is at 1.0840 but only a move below 1.0815 would indicate the current mild upward pressure has eased.”
Next 1-3 weeks: “EUR traded in a relatively quiet manner over the past few days and the price actions offer no fresh clues. We continue to hold same view from last Thursday (16 Apr, spot at 1.0890) wherein ‘the outlook is mixed’ and EUR could ‘continue to trade in an undecided manner within a broad 1.0750/1.1000 range for a period’.”