EUR/USD sticks to the consolidative range – UOB

In opinion of FX Strategists at UOB Group, EUR/USD is still expected to navigate within the 1.1740-1.1930 range for the time being.

Key Quotes

24-hour view: “We expected EUR to ‘grind higher towards 1.1865’ yesterday but were of the view that ‘1.1895 is unlikely to come into the picture’. However, EUR popped to a high of 1.1900, dropped to 1.1761 before snapping back up to end the day little changed at 1.1821 (-0.07%). The rapid but short-lived swings have resulted in a mixed outlook. For today, EUR could continue to trade in a choppy manner but is likely to stay within yesterday’s broad range of 1.1761/1.1900.”

Next 1-3 weeks: “There is no much to add to our update from yesterday (27 Aug, spot at 1.1835). As highlighted, EUR is still likely in a consolidation phase and ‘only a daily closing out of the 1.1740/1.1930 range would indicate that EUR is ready for a sustained directional move’. EUR rose to a high of 1.1900 during NY sessions but the advance was short-lived as it dropped back sharply to 1.1761 before rebounding to end the day largely unchanged (1.1821, -0.07%). The price actions suggest that EUR is not ready to move out of its consolidation phase just yet. In other words, there is no change in our view and we continue to expect EUR to trade between 1.1740 and 1.1930 (until there is a daily closing out of this range).”