EUR/USD: Likely to trade in a range between 1.1560 and 1.1610 – UOB Group

Euro (EUR) is likely to trade in a range between 1.1560 and 1.1610. In the longer run, EUR is expected to range-trade, but likely within a narrower range of 1.1520/1.1610, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is expected to range-trade

24-HOUR VIEW: "EUR traded in a range two days ago and closed largely unchanged at 1.1556. Yesterday, when it was at 1.1555, we pointed out that 'there has been no shift in directional momentum indicators'. We expected EUR to 'trade in a range between 1.1535 and 1.1575'. Our assessments were incorrect, as during the NY session, EUR rose sharply but briefly to a high of 1.1605. EUR pulled back from the high to close at 1.1580 (+0.21%). The price movements have resulted in an increase in upward momentum, but it is not sufficient to indicate a sustained rise. Today, we continue to expect EUR to trade in a range, likely between 1.1560 and 1.1610."

1-3 WEEKS VIEW: "Last Friday (07 Nov, spot at 1.1545), we indicated that 'the EUR’s weakness from a week ago has stabilised', and we expected EUR to 'trade in a range of 1.1485/1.1610 for the time being'. Yesterday, Tuesday, EUR rose briefly to a high of 1.1605. The slight increase in upward momentum suggests EUR is unlikely to break clearly above 1.1610. We continue to expect range-trading, but now anticipate a narrower range of 1.1520/1.1610. Looking ahead, even if EUR were to break above 1.1610, there is another solid resistance level at 1.1630."