EUR/USD: Further range trading seems likely – UOB Group
|Further Euro (EUR) range trading seems likely; slightly softened underlying tone suggests a lower range of 1.0850/1.0920. In the longer run, technical target at 1.0945 exceeded; deeply overbought conditions suggest while further gains are possible, the potential for additional upside may be limited, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Potential for additional upside may be limited
24-HOUR VIEW: "EUR surged and reached a high of 1.0947 on Tuesday. Yesterday (Wednesday), we indicated the following: 'The advance is deeply overbought, and negative momentum divergence is tentatively forming. To put it another way, further sustained rise in EUR seems unlikely. Today, EUR is more likely to consolidate its gains and trade in a 1.0870/1.0950 range.' USD subsequently traded in a narrower range than expected (1.0873/1.0930). Further range trading seems likely, even though the slightly softened underlying tone suggests a lower range of 1.0850/1.0920."
1-3 WEEKS VIEW: "After EUR soared and exceeded our technical target at 1.0945 two days ago, we highlighted yesterday (12 Mar, spot at 1.0915) that 'While the uptrend remains intact for now, it is worth noting that conditions are very deeply overbought.' We also highlighted that 'This suggests that while further gains are possible, the potential for additional upside may be limited.' Our update remains valid. On the downside, a breach of 1.0820 (‘strong support’ level was at 1.0805 yesterday) would indicate the start of a consolidation or pullback."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.