In opinion of FX Strategists at UOB Group, EUR/USD is poised to extend the current rangebound theme between 1.0730 and 1.0950 in the next weeks.
24-hour view: “EUR dipped to 1.0765 yesterday before rebounding quickly. The recovery amid oversold condition suggests that 1.0765 is a short-term bottom. In other words, EUR is likely to consolidate above 1.0765 from here. That said, the underlying tone is on the firm side and EUR is likely to probe the top of the expected 1.0815/1.0885 consolidation range first.”
Next 1-3 weeks: “There is not much to add to our update from Wednesday (06 May, spot at 1.0835). As highlighted, the recent sharp but short-lived swings have resulted in a mixed outlook. From here, EUR could continue to trade in an erratic manner and within a relatively broad range of 1.0730/1.0950 for a period.”