Extra rangebound likely in EUR/USD – UOB

FX Strategists at UOB Group expect EUR/USD to keep the sideline bias unchanged in the short-term horizon.

Key Quotes

24-hour view: “Our view for EUR last Friday was “there is scope for EUR to move above the strong 1.1085 resistance” but “1.1110 is likely out of reach”. EUR came within one pip of 1.1110 (high of 1.1109) before pulling back quickly. While upward pressure has eased somewhat, there is room for EUR to retest the 1.1110 level before a more sustained pullback can be expected. For today, the prospect for a rise beyond the next resistance at 1.1130 is not high. On the downside, support is at 1.1065 but only a move below 1.1050 would indicate a short-term top is in place”.

Next 1-3 weeks: “As highlighted, after the volatile price action last Thursday (12 Sep), EUR is likely to trade sideways within a broad 1.0925/1.1130 range. That said, the sharp upswing from 1.0925 suggests the bias is tilted to the upside but EUR has to move clearly above 1.1130 in order to indicate it is ready to for sustained advance (next resistance is at 1.1165 followed 1.1200)”.