EUR/USD: Further range bound trade looks likely – UOB
UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia suggest EUR/USD faces extra consolidation in the near term.
Key Quotes
24-hour view: After EUR dipped to 1.0520 last Thursday and rebounded, we highlighted last Friday that “the rebound has scope to extend to 1.0595, but the next resistance at 1.0620 is unlikely to come under threat.” We indicated that “support is at 1.0545, followed by 1.0530.” EUR then dipped to a low of 1.0534 and rebounded to 1.0597 before easing to close little changed for the day (1.0564, +0.04%). Momentum indicators are turning neutral, and today EUR is likely to trade sideways between 1.0535 and 1.0595.
Next 1-3 weeks: Our latest narrative for EUR was from last Wednesday (25 Oct, spot at 1.0595), wherein EUR is likely to trade in a range of 1.0510/1.0700 for now. Our view of range trading was not wrong, even though EUR traded in a narrower range than anticipated since last Wednesday. We continue to expect EUR to trade in a range. Given the lower volatility, the price movements in EUR are likely to remain in narrower range of 1.0510 to 1.0660 for now. At this time, it is unclear whether EUR will likely break below 1.0510 or above 1.0660 first.
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