Further rangebound trading is expected in EUR/USD in the short-term horizon, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We held the view that EUR ‘could edge higher but any advance is viewed as part of a 1.0800/1.0900 range’. Instead of ‘edging higher’, EUR popped to a high of 1.0895, dropped back down quickly to a low of 1.0805 before ending the day on a soft note at 1.0816 (-0.28%). Downward momentum has picked up slightly and from here, EUR could edge below the strong 1.0800 support. In view of the lackluster momentum, a break of last week’s 1.0765 low would come as a surprise. Resistance is at 1.0850 followed by 1.0870. The 1.0895 high is likely ‘safe’ for today.”
Next 1-3 weeks: “We have held the same view since last Wednesday (06 May, spot at 1.0835) wherein the outlook for EUR is mixed. We indicated that EUR could trade in an erratic manner and within a broad range of 1.0730/1.0950 for a period. The relatively choppy price actions since then reinforce our view. In other words, we continue to expect EUR to trade between 1.0730 and 1.0950 for now.”
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