UOB Group’s FX strategist Quek Ser Leang reports the euro remains locked in a tight trading range against the US dollar with no clear directional momentum emerging. After testing a session low of 1.1381 and bouncing to 1.1436, the EUR/USD pair is providing minimal fresh signals for currency traders seeking trend confirmation. The strategist expects the currency pair to maintain its sideways consolidation pattern throughout the current trading session, confined within a narrow fifty-pip band between support at 1.1385 and resistance at 1.1435.
The limited volatility suggests market participants are awaiting catalyst events before committing to larger directional positions. Forex brokers and institutional traders should anticipate range-bound conditions to persist absent any significant economic data releases or central bank communications that could break the technical stalemate between these key support and resistance levels.
FXnCO Insight
Consider fade-the-extremes strategies by selling near 1.1435 and buying near 1.1385 until a breakout confirms directional conviction.
Source: FXStreet