Slight increase in momentum is likely to result in a higher trading range of 1.1140/1.1205 instead of a sustained advance. In the longer run, Euro (EUR) has likely entered a range trading phase, probably between 1.1060 and 1.1215, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

To trade between 1.1060 and 1.1215 mid term

24-HOUR VIEW: “Two days ago, EUR fell sharply to 1.1113. Yesterday, when EUR was at 1.1130, we highlighted that ‘the swift decline appears to be overdone, and EUR is unlikely to weaken much further.’ We were of the view that EUR ‘is more likely to trade in a 1.1110/1.1170 range.’ EUR subsequently traded in a higher range of 1.1124/1.1189, closing at 1.1176 (+0.40%). While the price action has resulted in a slight increase in momentum, this is likely to translate into a higher trading of 1.1140/1.1205 instead of a sustained advance.”

1-3 WEEKS VIEW: “We highlighted yesterday (26 Sep, spot at 1.1130) that the recent short-term upward momentum has faded, and EUR ‘has likely entered a range trading phase, probably between 1.1060 and 1.1215.’ We continue to hold the same view. Looking ahead, EUR not only has to break above 1.1215 but also 1.1230 before a sustained rise towards 1.1275 can be expected.”