The euro halted its recent decline against the US dollar Tuesday as EUR/USD spiked to an intraday high of 1.1434 before pulling back, according to United Overseas Bank analyst Quek Ser Leang. The currency pair has now shifted from aggressive selling pressure into a consolidation phase, with momentum indicators showing limited directional strength in near-term trading.
UOB expects EUR/USD to range trade between 1.1360 and 1.1410 as the market digests recent moves. This marks a notable change in trading dynamics after the euro experienced sustained weakness in previous sessions. Traders and brokers should prepare for reduced volatility and choppier price action within this defined range rather than continuation of the earlier bearish trend.
The consolidation suggests neither bulls nor bears have gained control at current levels, creating uncertainty for directional positions across forex desks and institutional trading operations.
FXnCO Insight
With EUR/USD now range-bound, traders should reduce position sizes and focus on tactical plays within the 1.1360-1.1410 corridor until a clear breakout emerges.
Source: FXStreet