EUR/USD: There is room for further consolidation in the short term

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Our expectations for a further rebound in the euro yesterday did not materialize, with the euro fluctuating between 1.0710 and 1.0764 before finally closing at 1.0728 (-0.22%). The current price action may be part of a consolidation. Today, we expect the euro to trade in a range of 1.0690/1.0760.

Next 1-3 weeks: Not much to add to the updates since Tuesday (September 12, spot price 1.0750). As we have highlighted, the euro’s recent weakness has stabilized. Within this range, the euro is likely to trade between 1.0690 and 1.0820. Looking ahead, if the euro breaks and sustains below 1.0690, the risk of a fall towards the main support at 1.0635 will increase.