EUR/USD seen within a broad range so far – UOB
FX Strategists at UOB Group believe EUR/USD has charted a short-term top near 1.15 and it is now expected to navigate a broad range in the next weeks.
24-hour view: “EUR dipped to a low of 1.1053 last Friday before recovering (closed at 1.1105). The strong bounce upon opening this morning suggests the weakness in EUR has stabilized. That said, it is too early to expect sustained recovery. From here, EUR could continue to trade in a volatile manner and within a broad range of 1.1050/1.1260.”
Next 1-3 weeks: “We indicated on Wednesday (11 Mar, spot 1.1300) that ‘upward momentum has been dented’ and added, ‘a break of 1.1230 would indicate that the rally that started in February has run its course’. EUR cracked 1.1230 yesterday (12 Mar), plummeted to 1.1054 before snapping back up. The wild swings resulted in a huge 1-day range of 279 pips, the largest since June 2018. Overall, Monday’s top of 1.1496 is viewed a short-term top and from here, EUR could trade in a choppy manner and within a broad 1.0980/1.1380.”