EUR/USD poised for a test of 1.0750 – UOB

In opinion of FX Strategists at UOB Group, EUR/USD could attempt a visit to the mid-1.0700s in the next weeks.

Key Quotes

“The 1.0730 target indicated yesterday was not met as EUR dropped sharply after hitting a high of 1.0714. The 1.0714 high is viewed as a short-term top and EUR has likely moved into a consolidation phase. That said, the immediate bias is for a probe lower towards the bottom of the expected 1.0620/1.0690 consolidation range”.

“EUR hit a high of 1.0714 yesterday before pulling back sharply. Despite the pull-back, the undertone is still positive and another attempt higher towards 1.0750 still seems likely (after the current short-term consolidation phase is over). Only a move back below 1.0615 would indicate that the immediate upward pressure has eased”.