EUR/USD expected to keep the range bound theme near term – UOB

In opinion of FX Strategists at UOB Group, EUR/USD is still seen within the 1.0870-1.1080 range.

Key Quotes

24-hour view: “We highlighted yesterday that ‘while downward momentum has not improved by much, there is scope for EUR to test the major support at 1.0870 before a recovery is likely’. However, EUR only dipped to 1.0899 before rebounding. Downward pressure has eased and the current movement is viewed as part of a consolidation. In other words, EUR is likely to trade sideways for today, expected to be within a range of 1.0900/1.1000.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Mar, spot at 1.0930). As highlighted, EUR is likely to trade sideways within a range of 1.0870/1.1080. Looking ahead, if EUR closes below 1.0870, it would likely revisit the major support at 1.0805.”