FX Strategists at UOB Group see EUR/USD keeping the 1.1080/1.1140 range in the very near term.
Key Quotes
24-hour view: “Despite overall positive indications, EUR was not able to build on its gains as it dropped rapidly to an overnight low of 1.1092. While there is room for the decline in EUR to extend lower, downward momentum is not strong and any weakness is viewed as a lower trading range of 1.1080/1.1140 (a sustained down-move is not expected)”.
Next 1-3 weeks: “There is not much to add to the update from yesterday (26 Aug, spot at 1.1145). As highlighted, the current movement in EUR is viewed as a corrective rebound that has room to extend higher. However, the month-to-date high near 1.1250 is a solid resistance and this level could be out of reach. After yesterday’s rapid retreat, 1.1180 is already quite a strong level ahead of 1.1220 and 1.1250. On the downside, a break of 1.1050 would indicate that the current upward pressure has eased”.
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