Euro: Upside bias within defined range against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann analysts report that EUR/USD was little changed around 1.1620 on Monday, but note a slight pickup in upward momentum. Intraday, they see scope for a test of 1.1640, while over the next one to three weeks the upside bias remains intact, with the pair expected to trade within a narrower 1.1585–1.1670 band and major resistance at 1.1670 unlikely to be threatened decisively.

Euro holds gentle upward bias

"24-HOUR VIEW: When EUR was at 1.1615 in the early Asian session yesterday, we indicated that “the current price movements are likely part of a 1.1595/1.1635 range-trading phase.” EUR subsequently traded between 1.1601 and 1.1635, closing little changed at 1.1621 (+0.07%). Despite the quiet price action, upward momentum has increased slightly. Today, EUR could edge higher and test 1.1640. A break above this level is not ruled out, but any further advance is highly unlikely to threaten the major resistance at 1.1670. Support is at 1.1610, followed by 1.1600."

"1-3 WEEKS VIEW: In our most recent narrative from last Friday (04 Sep, spot at 1.1635), we highlighted that while the strong surge from last Thursday “suggests the bias has shifted to the upside, but upward momentum is not that strong for now, and any advance could stay within a 1.1585/1.1690 range.” Yesterday (07 Sep, spot at 1.1625), we highlighted that “the upside bias remains intact, but EUR should stay within a narrower range of 1.1585/1.1670.” 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.)