EUR/USD: Likely to trade sideways between 1.0800 and 1.0890 – UOB Group

Euro (EUR) is likely to trade sideways between 1.0800 and 1.0890 vs US Dollar (USD). In the longer run, uptrend remains intact, but it is unclear for now if EUR can reach 1.0945, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.  

Uptrend remains intact

24-HOUR VIEW: "We highlighted last Friday that 'the current price movements are likely part of a range trading phase, probably between 1.0740 and 1.0840.' We did not expect the continued advance in EUR, as it rose to 1.0888 during the NY session and then pulled back to close at 1.0832 (+0.45%). Despite the rise, there has been no clear increase in upward momentum. Today, instead of continuing to rise, EUR is more likely to trade sideways between 1.0800 and 1.0890." 

1-3 WEEKS VIEW: "We shifted our view to positive early last week (as annotated in the chart below). Tracking the subsequent sharp rally, we indicated last Friday (07 Mar, spot at 1.0790) that 'while the uptrend remains intact, at this stage, it is unclear for now if EUR can reach 1.0945.' Although EUR subsequently rose to 1.0888, conditions are deeply overbought, and it remains unclear for now if it can reach 1.0945. Overall, only a breach of 1.0690 (‘strong support’ level previously at 1.0640) would suggest that the sharp rally is ready to take a breather."