The Euro (EUR) is likely to trade in a range between 1.1085 and 1.1155. Solid momentum indicates further EUR strength; it remains to be seen if the 2023 high of 1.1275 is within reach, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Momentum may take EUR/USD above 1.1155

24-HOUR VIEW: “We expected EUR to ‘trade in a higher range of 1.1110/1.1180’ yesterday. However, it traded in a lower range instead, between 1.1095 and 1.1164, closing at 1.1112 (-0.34%). The price action is likely part of a range trading phase. Today, we expect USD to trade between 1.1085 and 1.1155.”

1-3 WEEKS VIEW: “Our view from yesterday (22 Aug, spot at 1.1155) remains unchanged. As indicated, solid momentum after the recent price action indicates further EUR strength is likely. However, it remains to be seen whether the 2023 high of 1.1275 is within reach in the next couple of weeks. Overall, we will hold a positive EUR view provided that the ‘strong support’ level at 1.1045 (no change in ‘strong support’ level) is not breached.”