EUR/USD Sees Range-Bound Trading Ahead as UOB Flags Capped Upside
EUR/USD is expected to enter a range-bound phase, according to United Overseas Bank's foreign exchange strategists. The bank's analysis suggests that the euro's recent advance against the US dollar has lost steam and will likely consolidate between support at 1.08 and resistance near 1.09.
The pair's movement is influenced by diverging economic signals from the Eurozone and the United States, with the US economy showing resilience and a relatively hawkish Federal Reserve stance limiting the euro's upside potential.
For traders, this range-bound forecast suggests buying near support and selling near resistance, rather than chasing directional moves. Upcoming economic data releases, such as Eurozone inflation figures and US non-farm payrolls, could provide the next directional impulse.