Euro: Range trading bias around recent rebound against US Dollar– UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD extended gains to 1.1269 before easing, with current price action seen as part of a consolidation. Intraday, the Euro (EUR) is expected to hold between 1.1180 and 1.1245. On a 1–3 week horizon, the bank has shifted to a neutral stance, looking for range trading between 1.1160 and 1.1280 after the recent rebound.

Euro seen consolidating after sharp rise

"24-HOUR VIEW: EUR rose sharply to a high of 1.1240 last Thursday. When it was at 1.1215 on Friday, we highlighted the following: “The sharp advance appears to be overextended. This, combined with early signs of slowing momentum, suggests EUR is unlikely to rise much further. Today, we expect EUR to trade in a range between 1.1180 and 1.1240.” However, EUR rose sharply to 1.1269. EUR closed at 1.1239 (+0.19%), but it traded lower after opening today. The current price movements are likely part of a range-trading phase. Today, we expect EUR to trade between 1.1180 and 1.1245."

"1-3 WEEKS VIEW: We revised our EUR view from negative to neutral last Friday (16 Oct, spot at 1.1215). We indicated that EUR “has likely entered a rangetrading 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.)