Euro: Range-trading bias persists near recent lows against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang highlights that EUR/USD underperformed on Monday, slipping to 1.1210 as French political unrest and Ukraine-Russia tensions weighed on the Euro (EUR). The pair is seen trapped in a short-term 1.1185–1.1235 band, while the broader 1.1160–1.1280 range dominates. UOB also suggests the early-September decline may have bottomed near 1.1112, allowing for a corrective recovery.

Euro-Dollar confined to defined bands

"24-HOUR VIEW: When EUR was at 1.1215 in the early Asian session yesterday, we stated that “the current price movements are likely part of a rangetrading phase between 1.1180 and 1.1245.” EUR traded within a narrower range of 1.1180/1.1234 before settling at 0.26% lower at 1.1210. The price movements still appear to be part of a range-trading phase, likely between 1.1185 and 1.1235."

"1-3 WEEKS VIEW: Our most recent narrative was from last Friday (16 Oct, spot at 1.1215), when we indicated that EUR “has likely entered a range-trading phase, and for the time being, it is likely to trade between 1.1160 and 1.1280.” We continue to hold the same view for now. "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)