FX Strategists at UOB Group expect EUR/USD to navigate within the 1.1640-1.1820 range in the next weeks.
Key Quotes
24-hour view: “Our expectation for EUR to ‘edge downwards to 1.1700’ was incorrect as it traded between 1.1723 and 1.1782. Despite the relatively strong recovery, upward momentum has hardly improved. That said, there is room for EUR to edge higher but any advance is viewed as part of a higher trading range of 1.1730/1.1800.”
Next 1-3 weeks: “Yesterday, we highlighted that ‘as EUR approaches 1.1830, upward momentum has improved, albeit not by much’. We added, ‘there is room for EUR to edge above 1.1830 and move towards the next resistance at 1.1870’. EUR subsequently rose to a high of 1.1807 before dropping suddenly to an overnight low of 1.1730. While our ‘strong support’ level at 1.1715 is still intact, the rapid loss in momentum indicates that our expectation for a higher EUR is incorrect. From here, it seems that EUR has lapsed back into a consolidation phase and is likely trade between 1.1640 and 1.1820 for now.”
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