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

UOB’s Quek Ser Leang and Lee Sue Ann describe EUR/USD as range-bound near 1.1630, with recent trading contained between 1.1619 and 1.1653. They maintain an upside bias but expect the Euro to stay within 1.1585–1.1670 in the coming weeks. Longer term, they see near-term downward pressure but doubt a sustained break below 1.1505 given prevailing momentum.

Euro bias positive but capped in range

"24-HOUR VIEW: When EUR was at 1.1625 in the early Asian session yesterday, we indicated that “the current price movements are likely part of a rangetrading phase between 1.1605 and 1.1640.” Although EUR subsequently traded within a higher range of 1.1619/1.1653, it closed largely unchanged at 1.1632 (+0.08%). There has been no shift in either downward or upward momentum. Today, we expect EUR to trade in a range between 1.1610 and 1.1650."

"1-3 WEEKS VIEW: 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 any advance could stay within a 1.1585/1.1690 range.” On Monday (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.” EUR traded in a relatively quiet manner over the past few days, and 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.)