The euro has hit a ceiling against the US dollar following last week’s rally, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. EUR/USD momentum has flattened after the recent surge, with the pair now consolidating rather than extending gains.
UOB strategists identify key resistance preventing further euro strength, projecting the currency pair will trade within a tight 1.1530 to 1.1560 band during today’s session. The stalled momentum suggests traders who pushed EUR/USD higher last week are now taking profits or awaiting fresh catalysts before committing to additional long positions.
This technical pause comes as the euro struggles to break through overhead resistance levels despite recent bullish sentiment. The narrow intraday range forecast indicates limited volatility expected in the near term, with neither bulls nor bears currently in control.
FXnCO Insight
Traders should watch for a decisive break above 1.1560 or below 1.1530 to signal the next directional move, as continued range-bound trading suggests profit-taking opportunities rather than trend positions.
Source: FXStreet