Likely to trade in a range between 1.1625 and 1.1660 – UOB Group

Euro (EUR) is likely to trade in a range between 1.1625 and 1.1660. In the longer run, EUR is still consolidating, but likely in a range of 1.1600/1.1700, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

EUR is still consolidating

24-HOUR VIEW: “When EUR was at 1.1645 in the early Asian session yesterday, we noted ‘a slight increase in downward momentum’. We expected EUR to ‘edge lower’, but we were of the view that ‘a break of 1.1615 appears unlikely’. Our view did not materialize, as EUR traded in a relatively tight range of 1.1634/1.1661, closing marginally higher by 0.01% at 1.1642. The price movements are likely part of a range trading phase. Today, we expect EUR to trade between 1.1625 and 1.1660.”

1-3 WEEKS VIEW: “Two days ago (13 Jan, spot at 1.1665), we indicated that ‘the weakness in EUR from early last week has stabilized’. We highlighted that EUR ‘appears to have entered a consolidation phase, and for the time being, it is likely to trade between 1.1615 and 1.1730’. The price action since then still appears to be part of a consolidation, but we now expect EUR to trade in a lower and narrower range of 1.1600/1.1700.”