EUR/USD: Likely to consolidate between 1.1680 and 1.1740 – UOB Group

Euro (EUR) is likely to consolidate between 1.1680 and 1.1740. In the longer run, EUR could rise but any advance is likely part of a higher range of 1.1650/1.1790, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Any advance is likely part of a higher range

24-HOUR VIEW: "Last Friday, EUR surged to a high of 1.1759 and then pulled back to close at 1.1717 (+0.58%). The pullback from overbought conditions suggests that EUR is unlikely to rise much further. Today, EUR is more likely to consolidate between 1.1680 and 1.1740."

1-3 WEEKS VIEW: "After EUR dropped sharply last Tuesday, we indicated the following on Wednesday (03 Sep, spot at 1.1635): 'We expect EUR to trade with a downward bias now, but it is too early to determine whether EUR can break clearly below the major support at 1.1570. The downward bias will remain intact as long as EUR holds below 1.1700 (‘strong resistance’ level).' Not only did EUR not break below 1.1570, but it also rose sharply last Friday, reaching a high of 1.1759. While there has been an increase in momentum, it is not sufficient to indicate a sustained advance. That said, there is a chance EUR could rise, but we view any advance as part of a higher range of 1.1650/1.1790. In other words, EUR is unlikely to break clearly above 1.1790."