UOB strategists Quek Ser Leang and Lee Sue Ann report that the EUR/USD currency pair is currently trading within a consolidation band following a brief drop to 1.1676 and a flat close near 1.1711, representing a minor decline of 0.08% on the day [1]. The analysts note that there has been no clear shift in either downward or upward momentum, and they expect intraday trading to remain within the 1.1690 to 1.1735 range [1].
Looking at the 1–3 week outlook, UOB maintains that the EUR/USD is likely to stay in a broader consolidation phase between 1.1665 and 1.1765. The strategists emphasize that a downside move toward 1.1625 would only be considered if the pair breaks and holds below the 1.1665 level [1].
Previously, UOB had highlighted increased downward momentum, but after the pair broke above the 'strong resistance' level at 1.1750, they now believe that downward momentum has faded and consolidation is the most probable scenario in the near term [1]. No significant market reaction or volatility is noted, and no analyst opinions suggest a directional breakout at this time [1].
CONCLUSION
UOB analysts see EUR/USD consolidating in a defined range, with no clear momentum in either direction. Downside risk is only considered if the pair sustains a break below 1.1665, otherwise, range-bound trading is expected to persist.