Euro: Range trading intact near recent lows against US Dollar – UOB

United Overseas Bank strategists (UOB) Quek Ser Leang and Lee Sue Ann report that EUR/USD outperformed modestly as the US Dollar (USD) softened, but price action remains choppy and largely directionless. In the near term, they expect intraday ranges around 1.1185–1.1250, while over the next 1–3 weeks the Euro (EUR) is seen consolidating in a narrower 1.1170–1.1270 band, with a corrective recovery potentially extending above the 21-day EMA.

Euro seen consolidating in tighter band

"24-HOUR VIEW: Following Wednesday’s price action, we highlighted yesterday that “momentum indicators are mostly flat and today,” and we expected EUR “to range-trade between 1.1210 and 1.1250.” EUR subsequently rose to 1.1256, declined to 1.1188 and then rebounded to close at 1.1214 (-0.16%). We are not able to derive much from the price action. Today, EUR could trade between 1.1185 and 1.1250."

"1-3 WEEKS VIEW: We have been expecting EUR to trade in a range since late last week. Yesterday (22 Oct, spot at 1.1230), we stated that “the price movements since then still appear to be part of a range-trading phase, but a narrower 1.1170/1.1270 range is likely sufficient to contain EUR for now.” We continue to hold the same view."

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