EUR/USD remains sidelined for the time being – UOB

EUR/USD is expected to trade within a rangebound theme in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of “trading sideways”, EUR dropped sharply to a low of 1.0994 before recovering to end the day on a soft note at 1.1017 (- 0.21%). Downward momentum has picked up, albeit not by much. From here, barring a move back above 1.1050 (minor resistance at 1.1035), EUR could dip below 1.0994 but the next support at 1.0975 is unlikely to come into the picture”.

Next 1-3 weeks: “EUR slipped and lost -0.20% last Friday (NY close of 1.1017). The price action offers no fresh clues and we continue to hold the same view from more than a week ago (13 Sep, spot at 1.1055) wherein EUR is expected “trade sideways”. For now, the expected sidewaytrading range is still within 1.0925/1.1130. Looking forward, EUR has to register a NY close out of the expected range before a more sustained directional price action can be expected”.