Euro: Sideways consolidation inside defined band against US Dollar – UOB

UOB strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD extended modest gains as the US Dollar (USD) weakened on softer Treasury yields and better risk sentiment. Near-term, they see the Euro (EUR) trapped in a narrow intraday range, while the 1–3 week view keeps the pair in a broader consolidation band, with a 1–3 month corrective recovery potentially stretching above the 21-day EMA.

Euro stuck in well-defined ranges

"24-HOUR VIEW: Our view of range-trading yesterday was incorrect, as EUR briefly rose to a high of 1.1260 and then pulled back to close at 1.1236 (+0.23%). The brief advance did not lead to any increase in upward momentum, and we continue to expect EUR to trade in a range today, most likely between 1.1205 and 1.1255."

"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."