EUR/USD: Likely to trade between 1.1480 and 1.1660 – UOB Group

Euro (EUR) is unlikely to rise much further against US Dollar (USD), it is more likely to trade in a range of 1.1575/1.1645. In the longer run, EUR is expected to continue to trade in a range; given the increase in volatility, it is now likely to trade between 1.1480 and 1.1660.

EUR is expected to continue to trade in a range

24-HOUR VIEW: "On Monday, EUR gapped down on the open and then soared to close higher at 1.1576. In the early Asian session yesterday, when EUR was at 1.1585, we highlighted the following: 'The sharp rally may extend further, but deeply overbought conditions suggest EUR is unlikely to break clearly above 1.1620.' However, EUR broke above 1.1620, reached a high of 1.1641, before easing off. Conditions remain overbought. This, combined with slowing momentum, suggests EUR is unlikely to rise much further. Today, EUR is more likely to trade in a range of 1.1575/1.1645."

1-3 WEEKS VIEW: "Last Thursday (19 Jun, spot at 1.1475), we highlighted that EUR 'is likely to trade in a range for now, probably between 1.1400 and 1.1570.' After EUR rose above 1.1570 on Monday, we indicated yesterday (24 Jun, spot at 1.1585) that 'while EUR has moved above 1.1570, there has been no significant increase in upward momentum.' However, we pointed out that 'given the increase in volatility, we now expect EUR to trade in a range of 1.1480/1.1660.' EUR subsequently rose to 1.1641. Although there has been an increase in upward momentum, it is not sufficient to suggest a sustained advance. For the time being, we continue to expect EUR to trade in a range between 1.1480 and 1.1660. Looking ahead, should EUR break and hold above 1.1660, it could signal the start of a move above 1.1700."