Euro: Range trading bias around recent rebound against US Dollar– UOB

FXStreet Insights Team FXStreet

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD extended gains to 1.1269 before easing, with current price action seen as part of a consolidation. Intraday, the Euro (EUR) is expected to hold between 1.1180 and 1.1245. On a 1–3 week horizon, the bank has shifted to a neutral stance, looking for range trading between 1.1160 and 1.1280 after the recent rebound.

Euro seen consolidating after sharp rise

"24-HOUR VIEW: EUR rose sharply to a high of 1.1240 last Thursday. When it was at 1.1215 on Friday, we highlighted the following: “The sharp advance appears to be overextended. This, combined with early signs of slowing momentum, suggests EUR is unlikely to rise much further. Today, we expect EUR to trade in a range between 1.1180 and 1.1240.” However, EUR rose sharply to 1.1269. EUR closed at 1.1239 (+0.19%), but it traded lower after opening today. The current price movements are likely part of a range-trading phase. Today, we expect EUR to trade between 1.1180 and 1.1245."

"1-3 WEEKS VIEW: We revised our EUR view from negative to neutral last Friday (16 Oct, spot at 1.1215). We indicated that EUR “has likely entered a rangetrading phase, and for the time being, it is likely to trade between 1.1160 and 1.1280.” We continue to hold the same view for now."

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FXStreet Insights Team

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