EUR/USD: Any advance is likely limited to a test of 1.1605 – UOB Group

There has been a slight increase in momentum; Euro (EUR) could edge higher against US Dollar (USD), but any advance is likely limited to a test of 1.1605. In the longer run, EUR is still range trading; a narrower range of 1.1480/1.1660 is likely sufficient to contain price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is still range trading

24-HOUR VIEW: "We expected EUR to 'trade within a range of 1.1550/1.1605' yesterday. Our view was incorrect, as EUR dipped to a low of 1.1525 before recovering to close largely unchanged at 1.1574 (+0.03%). The recovery has resulted in a slight increase in upward momentum. Today, we expect EUR to edge higher, but any advance is likely limited to a test of 1.1605. Support is at 1.1550; a breach of 1.1525 would indicate that the mild upward pressure has eased."

1-3 WEEKS VIEW: "In our update from two days ago (04 Aug, spot at 1.1580), we indicated that 'for the time being, EUR is likely to trade in a range between 1.1435 and 1.1660.' We continue to expect range trading but given the subdued price action over the past couple of days, a narrower range of 1.1480/1.1660 is likely sufficient to contain the price movements for now."