EUR/USD: a move beyond 1.1085 looks unlikely – UOB

FX Strategists at UOB Group still remain neutral on EUR/USD, expecting it to keep the rangebound theme intact in the short-term horizon.

Key Quotes

24-hour view: “Expectation for sideway trading was incorrect as EUR rebounded to a high of 1.1067 before easing off to end the day slightly higher at 1.1047 (+0.17%). Upward momentum has improved slightly and this could lead to EUR edging higher towards last week’s top near 1.1085. For today, a sustained rise above this level is not expected (next resistance is at 1.1110). On the downside, only a move below 1.1015 would indicate the current mild upward pressure has eased (minor support at 1.1030)”.

Next 1-3 weeks: “EUR rebounded and closed slightly higher yesterday (1.1047, +0.17%). The price action offers no fresh clues and we continue to hold on to our view from last Thursday (05 Sep, spot at 1.1035) wherein EUR is “expected to trade sideways”. While the immediate bias appears to be tilted the upside, any advance is likely limited to a test of the top of the expected 1.0980/1.1110 sideway trading range (narrowed from 1.0950/1.1110 previously)”.