EUR/USD is now seen navigating within the 1.1750-1.1920 range in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “EUR traded between 1.1811 and 1.1874 lasts Friday, narrower than our expected range of 1.1775/1.1870. The quiet price actions offer no fresh clues and further consolidation would not be surprising, likely within a range of 1.1800/1.1870.”
Next 1-3 weeks: “Two days on 09 Sep (spot at 1.1770), we highlighted that ‘downward momentum is beginning to improve but EUR has to close below 1.1750 before a sustained decline can be expected’. We noted that ‘the prospect for such a scenario is not high but it would increase quickly within these few days unless EUR moves back above 1.1845’. EUR rose to a high of 1.1916 yesterday and while the advance lasted only briefly, downward momentum has more or less dissipated. In other words, EUR has likely moved back into a consolidation phase and could trade between 1.1750 and 1.1920 for a while.”
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