United Overseas Bank (UOB) strategists Quek Ser Leang and Christopher Wong report EUR/USD has eased after Wednesday’s surge, with current price action seen as consolidation between 1.1420 and 1.1465. On a 1–3 week view, the Euro retains an upside bias, though momentum toward the 1.1520 resistance is still uncertain, and a break below 1.1405 would signal a return to broader range trading.

Euro consolidates after recent rally

"24-HOUR VIEW: After EUR surged to a high of 1.1482 on Wednesday, we highlighted yesterday that “while the rapid rise appears to be running ahead of itself, there is scope for EUR to test 1.1490.” We also highlighted that “we do not expect the significant resistance at 1.1520 to come into view.” However, instead of testing 1.1490, EUR pulled back from 1.1476 to 1.1430 before closing at 1.1441 (-0.19%). The immediate upward pressure has eased, and the current price movements are likely part of a consolidation phase, which is expected to be between 1.1420 and 1.1465."

"1-3 WEEKS VIEW: Our update from yesterday (16 Jul, spot at 1.1470) remains valid. As highlighted, while EUR “is likely to trade with an upside bias, it is too early to determine whether there is sufficient momentum for EUR to reach the significant resistance level at 1.1520.” On the downside, a breach of 1.1405 (no change in ‘strong support’ level) would indicate that EUR has reverted to a range-trading phase."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)