EUR/USD expected to trade within a broad range – UOB

FX Strategists at UOB Group noted EUR/USD is seen keeping the broad-based side-line trading for the time being.

Key Quotes

24-hour view: “Our view for EUR yesterday was that it ‘could move above 1.1150 but a sustained advance above 1.1200 appears unlikely’. However, EUR dropped quickly from 1.1146 and hit an overnight low of 1.1008. Upward pressure from the past few days has more or less dissipated and the current weakness could extend lower to 1.0970 (next support is at 1.0920). Resistance is at 1.1070 followed by 1.1110. The 1.1149 high is not expected to come into the picture.”

Next 1-3 weeks: “There is not much to add to the update from last Friday (27 Mar, spot at 1.1050). As highlighted, while the immediate bias is tilted to the upside, any advance is viewed as part of a broad 1.0840/1.1200 range. The rapid retreat from 1.1149 yesterday reinforces our view and from here, unless EUR breaks below 1.0840, there is still chance for EUR to test the major resistance at 1.1200.”