Euro Holds Within Defined Range Against US Dollar: UOB

The 1–3 week outlook for EUR/USD remains one of broad consolidation, according to UOB strategists Quek Ser Leang and Lee Sue Ann. They note that the pair added to modest gains as lower Treasury yields and improved risk appetite weighed on the US Dollar (USD). Their near-term view puts the Euro (EUR) in a tight intraday range. Over 1–3 months, a corrective recovery could extend above the 21-day EMA.

1–3 week outlook: Euro remains range-bound

"24-HOUR VIEW: Our view of range-trading yesterday was incorrect, as EUR briefly rose to a high of 1.1260 and then pulled back to close at 1.1236 (+0.23%). The brief advance did not lead to any increase in upward momentum, and we continue to expect EUR to trade in a range today, most likely between 1.1205 and 1.1255."

"1-3 WEEKS VIEW: Our most recent narrative was from last Friday (16 Oct, spot at 1.1215), when we indicated that EUR “has likely entered a range-trading 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."

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