EUR/USD rangebound between 1.0490 and 1.0590 – UOB

FX Strategists at UOB Group expects EUR/USD to stay sidelined in a 1.0490-1.0590 range in the next weeks.

Key Quotes

“We indicated yesterday that ‘unless EUR can move and stay above 1.0610 by end of today, it is more likely that this pair has moved into a consolidation phase’.

“EUR closed at 1.0540 and from here we expect this pair to trade sideways within a 1.0490/1.0590 range”.

“EUR has been trading within a relatively narrow 1.0490/1.0680 range for about 3 weeks now and such prolonged consolidation could lead to a sharp ‘break-out’.

“At this stage, the downside appears to be more vulnerable and a clean and clear break below 1.0490 could lead to a rapid drop to 1.0450, 1.0400”.