EUR/USD: Likely to trade in a 1.0395/1.0455 range - UOB Group

Euro (EUR) is likely to trade in a 1.0395/1.0455 range vs US Dollar (USD). In the longer run, EUR appears to have moved into a 1.0350/1.0500 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR appears to have moved into a range trading phase

24-HOUR VIEW: "Yesterday, we indicated that EUR 'could dip to 1.0430 before recovering.' We also indicated that 'the strong support at 1.0415 is unlikely to come under threat.' However, EUR fell more than expected to 1.0400, closing lower by 0.35% at 1.0421. Despite the decline, there has been no significant increase in downward momentum. This, combined with oversold conditions, suggests EUR is unlikely to weaken much further. Today, EUR is more likely to trade in a 1.0395/1.0455 range."

1-3 WEEKS VIEW: "We highlighted last Friday (14 Feb, spot at 1.0460) that 'the outlook for EUR is positive, with a technical target of 1.0530.' EUR then rose to 1.0514 and then pulled back. Yesterday, it broke below our 'strong support' level at 1.0415, indicating that upward momentum has faded. EUR appears to have moved into a range trading phase, and it is likely to trade between 1.0350 and 1.0500 for the time being."