EUR/USD: Likely to trade in a 1.1110/1.1170 range – UOB Group
|The Euro (EUR) is likely to trade in a 1.1110/1.1170 range. EUR has likely entered a range trading phase, probably between 1.1060 and 1.1215, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.
Rangebound for the time being
24-HOUR VIEW: “We highlighted yesterday that ‘there is a chance for EUR to rise above 1.1200, but there does not appear to be enough momentum for it to reach 1.1230.’ While our view was not wrong, as EUR rose to 1.1213, the sharp drop from the high was unexpected (low has been 1.1121). The swift decline appears to be overdone, and EUR is unlikely to weaken much further. Today, EUR is more likely to trade in a 1.1110/1.1170 range.”
1-3 WEEKS VIEW: “Yesterday (25 Sep, spot at 1.1180), we indicated that ‘while the choppy swings over the past couple of days have clouded the outlook, firm short-term momentum suggests EUR could rise towards 1.1230.’ We added, ‘the upside bias is intact as long as it remains above 1.1110.’ EUR then rose to 1.1213, pulling sharply to 1.1121. Although our ‘strong support’ level at 1.1110 has not been breached yet, the short-term upward momentum has faded. EUR has likely entered a range trading phase, probably between 1.1060 and 1.1215.”
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