EUR/USD: Wahrscheinliche Handelsspanne 1,0395/1,0455 - UOB Group

The euro (EUR) is likely to trade in a 1.0395/1.0455 range against the US dollar (USD). Longer term, EUR appears to have entered a 1.0350/1.0500 range trading phase, say UOB Group FX analysts Quek Ser Leang and Peter Chia.

EUR appears to have entered a range trading phase

24-HOUR VIEW: "Yesterday, we indicated that EUR 'could fall to 1.0430 before recovering'. We also noted that 'the strong support at 1.0415 is unlikely to be threatened'. However, the EUR fell more than expected to 1.0400 and closed 0.35% lower at 1.0421. Despite the fall, there was no significant increase in bearish momentum. This, combined with oversold conditions, suggests that the EUR is unlikely to weaken much further. Today, the EUR is more likely to trade in the 1.0395/1.0455 range.

1-3 WEEK VIEW: "We highlighted last Friday (14 Feb, spot at 1.0460) that 'the outlook for EUR is positive, with a technical target of 1.0530'. EUR then rallied to 1.0514 and then pulled back. Yesterday it broke below our 'strong support' level of 1.0415, suggesting that the upward momentum has faded. EUR seems to have entered a range trading phase and is likely to trade between 1.0350 and 1.0500 for the time being.