EUR/USD seen within the 1.1750/1.1950 range – UOB

FX Strategists at UOB Group see EUR/USD navigating within the 1.1750-1.1950 range in the next weeks.

Key Quotes

24-hour view: “EUR dropped sharply to a low of 1.1864 last Friday but the decline was short-lived as it rebounded quickly to end the day a tad lower at 1.1838 (-0.09%). Momentum indicators are mostly ‘neutral’ and after last Friday’s hectic price action, EUR could take a breather and trade sideways for today, likely between 1.1810 and 1.1870.”

Next 1-3 weeks: “We highlighted last Thursday (03 Sep, spot at 1.1830) that EUR has likely moved into a consolidation phase but is likely to test the bottom of the expected 1.1750/1.1950 range first. While EUR did not ‘test’ 1.1750 last Friday as it rebounded quickly from 1.1779, the underlying tone still appears to be on the soft side. In other words, there is no change to our view wherein EUR is trading in a consolidation phase but is likely to test the bottom of the range first.”