EUR/USD in a 1.0725/1.0935 range – UOB Group

EUR/USD is expected to extend its rangebound theme between 1.0725 and 1.0935 in the next weeks.

Key Quotes

“We indicated last Friday that “the bias is tilted to the upside but 1.0775/80 is acting as a very strong resistance and only a clear break of this level would indicate a move towards 1.0825 has started”.

“EUR opened with a gap higher this morning, well above 1.0775/80 before moving to a high of 1.0935. While the undertone is still clearly positive, the question now is whether the current EUR strength can be sustained in the coming days”.

“Based on the over-extended up-move, EUR is more likely to consolidate its gains and trade sideways for several days, likely holding between 1.0725 and 1.0935. Further out, as long as 1.0725 is not taken out, the odds for an upside break is greater”.