Euro: Consolidation keeps trading range-bound against US Dollar – UOB

Range-bound trading continues to dominate EUR/USD, with flat momentum indicators pointing to an expected intraday range of 1.1210 to 1.1250, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. For the coming one to three weeks, they expect price action to remain within a tighter 1.1170–1.1270 range. Their medium-term assessment suggests the decline that began in early September may have found a floor near 1.1112, opening the way for a corrective recovery above the 21-day EMA at 1.1280.

Will the euro remain within a tighter trading range?

"24-HOUR VIEW: EUR rose briefly to a high of 1.1260 on Tuesday and then pulled back. Yesterday, we pointed out that “the brief advance did not lead to any increase in upward momentum,” and we expected EUR “to trade in a range between 1.1205 and 1.1255.” EUR subsequently traded within a narrower range than expected (1.1211/1.1240), closing largely unchanged at 1.1232 (-0.04%). Momentum indicators are mostly flat and today, we expect EUR to range-trade between 1.1210 and 1.1250."

"1-3 WEEKS VIEW: In our most recent narrative from last Friday (16 Oct, spot at 1.1215), we indicated that EUR “has likely entered a range-trading phase, and for the time being, it is likely to trade between 1.1160 and 1.1280.” The price movements since then still appear to be part of a rangetrading phase, but a narrower 1.1170/1.1270 range is likely sufficient to contain EUR for now."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)