Likely to trade in 1.1110/1.1170 range – UOB Group

The Euro (EUR) is likely to trade in the 1.1110/1.1170 range. The EUR has likely entered a range trading phase, likely between 1.1060 and 1.1215, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

Limited for now

24-HOUR VIEW: “I pointed out yesterday that ‘there is a chance for the EUR to rise above 1.1200, but there doesn’t seem to be enough momentum for it to reach 1.1230.’ While our view was not wrong as the EUR rose to 1.1213, the sharp drop from the high was unexpected (the low was 1.1121). The rapid decline appears to be overdone and the EUR is unlikely to weaken much further. Today, the EUR is more likely to trade in the 1.1110/1.1170 range.”

WEEKS 1-3: “Yesterday (September 25 at 1.1180), we indicated that “while the choppy swings of the past two days have clouded the outlook, firm near-term momentum suggests the euro could rally towards 1.1230 “. I added, “the upside is intact as long as it remains above 1.1110.” EUR then rose to 1.1213 before pulling back to 1.1121. Although our “strong support” level at 1.1110 has not yet been broken, the short-term upside momentum has disappeared. EUR has probably entered a trading phase, probably between 1.1060 and 1.1215.”