Euro holds within defined consolidation range against US Dollar – UOB

Softer Treasury yields and improved risk sentiment weighed on the US Dollar (USD), allowing EUR/USD to extend its modest gains, according to UOB strategists Quek Ser Leang and Lee Sue Ann. They expect the Euro (EUR) to remain confined to a narrow intraday range in the near term and the pair to consolidate within a wider band over 1–3 weeks. Over 1–3 months, a corrective recovery could take the pair above the 21-day EMA.

Euro remains confined to clearly defined trading ranges

"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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