EUR/USD now seen between 1.2050-1.2200 – UOB

UOB Group’s FX Strategists believe EUR/USD could trade within the 1.2050-1.2200 range in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘further EUR gains appear likely but overbought conditions could ‘limit’ gains to 1.2200’. The subsequent advance fell short of our expectation as EUR eased off after touching 1.2179. Upward momentum has waned and for today, EUR is likely to trade sideways, expected to be between 1.3125 and 1.2180.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (22 Feb, spot at 1.2125). As highlighted, the outlook is mixed and EUR could trade between 1.2050 and 1.2200 for a period of time. Shorter-term upward momentum has improved somewhat but EUR has to close above 1.2200 before a sustained advance can be expected (next resistance is at 1.2230). At this stage, the prospect for such a scenario is not high but it would remain intact as long as 1.2080 is not taken out within these few days.”