EUR/USD: the euro is firmly oriented in an upward direction (UOB)

UOB believes that the EUR/USD could show an intraday consolidation phase before eventually picking up in the next few days.

"We underestimated the strength of the EUR/USD, as it continued to rise and far exceeded the target at 1.2240 (top at 1.2296).

The rally is heavily over-bought now, and while a continuation of the EUR/USD's ascent remains likely in the coming days, the stretched indicators suggest that a pause would not be surprising.

In other words, the EUR/USD could consolidate its gains and move horizontally near its highs, potentially between 1.2220 and 1.2295."