EUR/USD: Consolidation band defined – UOB

UOB’s strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD briefly overshot to 1.1754 before closing unchanged near 1.1720, reinforcing a range-trading bias. Intraday, the Euro (EUR) is seen holding between 1.1695 and 1.1745. For the coming weeks, They expect consolidation between 1.1665 and 1.1765, with earlier downside momentum having faded after resistance at 1.1750 was breached.

Euro holds within defined ranges

"24-HOUR VIEW: When EUR was at 1.1710 in the early Asian trade yesterday, we stated that “the current price movements in EUR are likely part of a range-trading phase, probably between 1.1685 and 1.1730.” The subsequent price movements did not turn out as expected. EUR rose to a high of 1.1754 and then pulled back sharply. EUR closed unchanged at 1.1720. The brief rise to 1.1754 appears to be an overshoot above the range rather than a continued rise. Today, we continue to expect range-trading, most likely between 1.1695 and 1.1745."

"1-3 WEEKS VIEW: Last Friday (24 Apr, spot at 1.1685), we highlighted that “downward momentum has increased further, but EUR must break and hold below 1.1665 before a move to 1.1625 can be expected.” Yesterday, EUR rose and broke above our ‘strong resistance’ level at 1.1750 with a high of 1.1754. Downward momentum has faded, and EUR has likely entered a consolidation phase. For the time being, we expect EUR to trade between 1.1665 and 1.1765."

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