EUR/USD now faces extra rangebound – UOB

UOB Group’s FX Strategists now expect EUR/USD to trade within the 1.1840-1.2030 range in the next weeks.

Key Quotes

24-hour view: “Yesterday, we highlighted that “the underlying tone still appears to be positive, and we see chance for EUR to test the 1.1990 level”. Our expectation did not materialize as EUR traded between 1.1909 and 1.1967. Momentum indicators are mostly neutral and EUR is likely to trade sideways today, expected to be within a 1.1900/1.1960 range.”

Next 1-3 weeks: “Last Friday (12 Mar, spot at 1.1985), we highlighted that EUR “could edge higher but 1.2060 is unlikely to come into the picture”. We added, “a break of 1.1900 would indicate the current mild upward pressure has eased”. While 1.1900 is still intact, the build-up in shorter-term momentum appears to have fizzled out. In other words, instead of edging higher, EUR is more likely to trade sideways for now, expected to be between 1.1840 and 1.2030.”