Euro: Sideways consolidation inside defined band against US Dollar – UOB

UOB strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD extended modest gains as the US Dollar (USD) weakened on softer Treasury yields and better risk sentiment. Near-term, they see the Euro (EUR) trapped in a narrow intraday range, while the 1–3 week view keeps the pair in a broader consolidation band, with a 1–3 month corrective recovery potentially stretching above the 21-day EMA.

Euro stuck in well-defined ranges

"24-HOUR VIEW: Our view of range-trading yesterday was incorrect, as EUR briefly rose to a high of 1.1260 and then pulled back to close at 1.1236 (+0.23%). The brief advance did not lead to any increase in upward momentum, and we continue to expect EUR to trade in a range today, most likely between 1.1205 and 1.1255."

"1-3 WEEKS VIEW: Our most recent narrative was from last Friday (16 Oct, spot at 1.1215), when 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.” We continue to hold the same view for now."

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