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

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD continues to lack clear directional cues, trading in a narrower range than previously anticipated. Near term, the Euro (EUR) is expected to oscillate between 1.1185 and 1.1230, while over the coming weeks they maintain a range-trading view within 1.1170–1.1270 and see scope for a corrective recovery above 1.1280.

Euro-Dollar confined to tight corridor

"24-HOUR VIEW: Last Friday, we indicated that EUR “could trade between 1.1185 and 1.1250.” EUR then traded within a narrower range of 1.1183/1.1226. The price action provides no fresh clues. Today, EUR could trade between 1.1185 and 1.1230."

"1-3 WEEKS VIEW: We have been expecting EUR to trade in a range since the middle of the month. In our most recent narrative from last Thursday (22 Oct, spot at 1.1230), we stated that “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.” 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.)