EUR/USD: Likely to trade in a range of 1.1270/1.1435 for now – UOB Grou

Increase in momentum is not enough to indicate a sustained advance; Euro (EUR) is likely to trade in a range of 1.1270/1.1435 for now vs US Dollar (USD), UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Momentum is not enough to indicate a sustained advance

24-HOUR VIEW: "The following are the excerpts from our update last Friday: “EUR surged, reaching a high of 1.1384 in the late NY session. The sharp rally has scope to extend, but given the deeply overbought conditions, any advance is likely part of a higher range of 1.1330/1.1415.” The subsequent price movements did not turn out as we expected. Instead of trading in a higher range, EUR fell from 1.1389 to 1.1312, rebounding quickly to close at 1.1347 (-0.21%). The price action still appears to be part of range trading phase. Today, we expect EUR to trade in a range of 1.1320/1.1390."

1-3 WEEKS VIEW: "Our update from last Friday (30 May, spot at 1.1380) remains valid. As highlighted, the recent 'increase in momentum is not enough for a sustained advance.' To rise in a sustained manner, EUR must first break and hold above 1.1435. Meanwhile, EUR is likely to trade in a range of 1.1270/1.1435."