UOB Group’s FX strategists noted EUR / USD is expected to navigate between 1.1740 and 1.1930 in the coming weeks.
24 hour view: “Our expectation for the Euro ‘higher edge’ was incorrect as it fell to 1.1770 before rebounding quickly and ended the day at 1.1839 (-0.03%). The underlying tone has firmed up somewhat and we see a chance for the EUR to move higher towards 1.1865. The next resistance at 1.1895 is unlikely to come into play. Support is at 1.1810 followed by 1.1775. “
Next 1-3 weeks: “A week ago Thursday (August 20, spot at 1.1845), we estimated that“ price action is considered the first steps in a consolidation phase ”and that the ‘EUR’ is likely to trade between 1.1740 and 1.1950 ‘. We subsequently detected a slight improvement in downward pressure and indicated that “the risk of breaking the low end first is higher”. However, in the last few days the EUR has traded sideways, between around 1.1770 and 1.1850. Price actions suggest the EUR is still consolidating. Only a daily close outside of the 1.1740 / 1.1930 range (narrowed by 1.1740 / 1.1950) would indicate that the EUR is ready for a sustained directional move. “