UOB Group Predicts Continued Range Trading for EUR/USD

In a recent analysis released on March 13, 2025, at 08:43:35, FX analysts Quek Ser Leang and Peter Chia from UOB Group offered insights into the future trading trends of the EUR/USD currency pair. Their research indicates that the euro (EUR) is likely to remain in a range – trading pattern, with a potential shift to a lower trading range.

Short – Term Outlook: Continued Range Trading

Looking at the 24 – hour view, the euro experienced a significant surge on Tuesday, reaching a high of 1.0947. However, the analysts noted that by Wednesday, the euro’s advance had pushed it into a deeply overbought territory, and negative momentum divergence was starting to form. This suggested that a further sustained upward movement was improbable.

Previously, they had forecasted that the euro would consolidate its gains and trade within a range of 1.0870 – 1.0950. In reality, the US dollar traded in a narrower range of 1.0873 – 1.0930. Going forward, the analysts still expect range trading to continue. Although, they caution that the underlying tone of the market has softened slightly, which may lead to a lower trading range of 1.0850 – 1.0920.

Medium – Term Outlook: Limited Upside Potential

From a 1 – 3 weeks perspective, the euro’s performance has been notable. It soared past the UOB Group’s technical target of 1.0945 two days ago. But the analysts were quick to point out that despite the uptrend remaining intact for the time being, the market conditions are extremely overbought.

This overbought situation implies that while the euro could still see some additional gains, the potential for substantial upward movement is limited. On the downside, they identified 1.0820 as a key level. A breach of this level, which was previously considered a “strong support” at 1.0805, would signal the beginning of a consolidation phase or a pullback in the euro’s value.

Overall, UOB Group’s analysis suggests that traders and investors should expect continued range trading for the EUR/USD pair in the near future, with a cautious approach warranted due to the overbought conditions and potential for a downward shift in the trading range.