UOB Research discusses EUR/USD technical outlook and sees the pair in an early phase of a consolidation phase.
"Yesterday, we indicated that EUR is still weak and the next level to focus on is at 1.1740. The subsequent sharp rebound in EUR that took out our ‘strong resistance’ level at 1.1860 (high of 1.1867) came as a surprise," UOB notes.
"The break of the ‘strong resistance’ indicates that the week-long negative phase in EUR has come to an end. The current movement is viewed as the early stages of a consolidation phase and EUR is likely to trade between 1.1790 and 1.1895 for now," UOB adds.