EUR/USD is now expected to trade within a consolidative range – UOB

EUR/USD is seen sticking to its range bound theme for the time being, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: We highlighted yesterday that EUR “could dip below the major support at 1.0630 before stabilisation is likely.” We also highlighted that “The next support at 1.0590 is unlikely to come under threat.” Our view turned out to be correct. EUR dropped to a low of 1.0615 and then rebounded to end the day little changed at 1.0568 (-0.01%). The current price movements are likely part of a consolidation. Today, EUR is likely to trade sideways in a range of 1.0620/1.0685. 

Next 1-3 weeks: There is not much to add to our update from yesterday (21 Sep, spot at 1.0655). As indicated, EUR is likely to trade in a range of 1.0590/1.0730 for now. Looking ahead, if EUR breaks clearly below 1.0590, it will likely lead to a sustained decline towards the major support at 1.0515.