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Spot is seen trading in a higher range within its current neutral outlook, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of trading sideways (as expected yesterday), EUR burst higher during NY hours to hit a high of 1.1649 before easing off slightly. While there is scope for EUR to extend higher, upward momentum is not exactly strong and any advance could limited to a test of 1.1670. The next resistance at 1.1700 is unlikely to come into the picture. On the downside, only a break of 1.1580 would indicate the current mild upward pressure has eased (minor support is at 1.1600)”.

Next 1-3 weeks: “We have held the same view since Monday (10 Sep, spot at 1.1555) wherein we expect EUR to “probe the bottom of the expected 1.1470/1.1640 consolidation range”. Since then, EUR traded sideways between 1.1524 and 1.1649 and after the relatively firm daily closings over the past two days, the short-term downward pressure has eased. However, there is no change to the current neutral outlook and EUR is still expected to trade sideways from here, albeit likely at a higher range of 1.1550/1.1700″.

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