EUR/USD: the euro could pursue its consolidation in the very short term (UOB)

UOB believes that the EUR/USD should consolidate on the forex in the very short term.

"While the EUR/USD extended its rebound, the pair hasn't reached the 1.2300 threshold. The rapid decline from the 1.2287 peak tested solid support at 1.2200/05 before recording a new rally (trough at 1.2204).

The tone has improved somewhat but it is too early to anticipate a sustained increase.

The EUR/USD should consolidate for the time being, with a possible range at 1.2220/1.2300."