EUR/USD: To trade in range between 1.0380 and 1.0440 – UOB Group

Euro (EUR) is likely to trade in range between 1.0380 and 1.0440. In the longer run, current price action is part of a recovery phase that could extend to 1.0480, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Current price action is part of a recovery phase

24-HOUR VIEW: “Following Tuesday’s price movements, we noted yesterday that ‘there has been no further increase in momentum.’ We were of the view that EUR ‘is likely to trade in a range, probably between 1.0345 and 1.0440.’ However, EUR rose to 1.0457, pulling back swiftly to close at 1.0407 (-0.21%). The price action did not result in any increase in either downward or update momentum. Today, we continue to expect EUR to trade in a range, most likely between 1.0380 and 1.0440.”

1-3 WEEKS VIEW: “We turned positive in EUR two days ago (21 Jan, spot at 1.0415), indicating that ‘the current price action is part of a recovery phase that could extend to 1.0480.’ Yesterday, EUR rose briefly to a three-week high of 1.0457 before pulling back. While there has been no further increase in momentum, we will maintain our view as long as 1.0340 (‘strong support’ level was at 1.0320 yesterday) is intact.”