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EUR/USD: Expected to continue to trade in a range – UOB Group

The Euro (EUR) is expected to continue to trade in a range, most likely between 1.0480 and 1.0535. In the longer run, instead of a rebound, EUR is expected to trade in a range for now, most likely between 1.0430 and 1.0580, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.  

EUR is expected to trade between 1.0430 and 1.0580

24-HOUR VIEW: “Following EUR sharp drop to 1.0459 on Monday, we highlighted yesterday (Tuesday) that ‘deeply oversold conditions and slowing momentum indicate that EUR is unlikely to weaken further.’ We expected EUR to ‘trade in a 1.0470/1.0540 range.’ Although our view of range trading was correct, EUR traded in a narrower range than expected (1.0479/1.0535), closing slightly higher at 1.0509 (+0.11%). The relatively quiet price action provides no fresh clues, and we continue to expect EUR to trade in a range, most likely between 1.0480 and 1.0535.”

1-3 WEEKS VIEW: “We highlighted yesterday (03 Dec, spot at 1.0500) that “instead of a rebound, EUR is expected to trade in a range for now, most likely between 1.0430 and 1.0580.” EUR then traded in a relatively quiet manner, and our view remains unchanged.”

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