Likely to trade between 1.1130 and 1.1195 – UOB Group

The Euro (EUR) is expected to trade in a range, probably between 1.1130 and 1.1195. Longer term, the EUR has likely entered a trading phase, likely between 1.1060 and 1.1215, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

It needs to break above 1.1230 for a sustained rally towards 1.1275

24-HOUR VIEW: “We indicated last Friday that ‘slight momentum build-up is likely to result in a higher 1.1140/1.1205 trading range instead of a sustained advance.’ Later, the EUR traded in a wider range than expected (1.1123/1.1202), ending slightly lower by 0.12% (1.1163). There was no increase in either downward or upward momentum. In other words, we continue to expect EUR to trade in a range, probably between 1.1130 and 1.1195.”

WEEKS 1-3: “Our update from last Thursday (September 26, spot at 1.1130) still stands. As pointed out, the EUR “probably entered a range trading phase, probably between 1.1060 and 1.1215”. Looking ahead, the EUR not only needs to break above 1.1215 but also 1.1230 before a sustained rally to 1.1275 can be expected.”