EUR/USD rebound still targets 1.0680 – UOB

According to FX Strategists at UOB Group, the rebound in EUR/USD could reach the 1.0680 area in the short term.

Key Quotes

“While EUR moved above last week’s 1.0630 peak as expected, the up-move was short-lived. Momentum has eased off quickly with the rapid pull-back from a high of 1.0640 and the current movement is viewed as the early stages of a consolidation phase. Expect sideway trading for today, even though the immediate bias is for a probe lower towards the bottom of the expected 1.0550/1.0610 consolidation range”.

“EUR touched a high of 1.0640 but the up-move was quickly reversed. Despite the weak daily closing, the strong rebound from last Friday’s 1.0499 low appears to have scope to extend higher to test 1.0680. At this stage, a clear break of this level is not expected. Support is at 1.0550 but only a move below 1.0520 would indicate that the immediate upward pressure has eased”.