EUR/USD sticks to the rangebound view – UOB

Spot is seen gravitating between 1.1770 and 1.1980 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR registered a range of 1.1851/1.1920 yesterday, very close to our expected 1.1850/1.1920 consolidation range. Indicators are mostly still ‘neutral’ which suggest further sideway trading, likely not moving much out of the range registered yesterday”.

Next 1-3 weeks: “When we shifted to a neutral stance last Thursday (31 Aug), we expected EUR to trade sideways within a broad 1.1770/1.1980 range. After the release of US jobs data on Friday, EUR spiked higher but retreated quickly from a high of 1.1979. From here, we continue to view the current movement as part of a consolidation phase and further sideway trading between 1.1770 and 1.1980 still seems likely. On a shorter-term note, the bias is for a probe lower towards the bottom of the expected sideway trading range”.