To trade between 1.1060 and 1.1215 – UOB Group

The 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.

The major support at 1.1060 is unlikely to come into view

24-HOUR VIEW: “We expected EUR to trade in a range between 1.1130 and 1.1195 yesterday. However, EUR traded in a wider range than expected (1.1113/1.1208), closing on a soft note at 1.1134 (-0.26%). The slight increase in momentum suggests EUR could drift lower today. Given the mild momentum, any decline is likely limited to a test of 1.1105. The major support at 1.1060 is highly unlikely to come into view. Resistance is at 1.1160; a breach of 1.1180 would mean that the mild downward pressure has faded.”

1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (26 Sep, spot at 1.1130), we highlighted that EUR ‘has likely entered a range trading phase, probably between 1.1060 and 1.1215.’ EUR rose above 1.1200 last Friday and again yesterday, but on both occasions, it retreated quickly. While the price action supports our view that EUR is trading in a range, after retreating from the upper limit of the expected 1.1060/1.1215 range, it could now test the lower end instead.”