The Euro is expected to stay within the range of 1.1655 to 1.1720. While there is potential for growth in the long run, breaking above 1.1805 seems unlikely for now, according to UOB Group’s FX analysts. **24-Hour Outlook** After a strong rise in the USD, we expect the Euro to consolidate. It may end the day at 1.1682, down 0.36%. A softer trend suggests it will fluctuate between 1.1655 and 1.1720 today. In the next week or three, the Euro might still rise, although recent highs may not be reached. The probability of exceeding 1.1805 is low unless it falls below the new support level of 1.1625. **Market Insights** The FXStreet Insights Team gathers observations from top experts to provide clear market notes. Their analysis offers a broad view of currency movements. Given the expectation for the Euro to consolidate between 1.1655 and 1.1720, selling volatility could be a smart strategy for the short term. Using options strategies that benefit from time decay and stable prices, like an iron condor, could perform well in this scenario. The set range provides clear markers for short strikes. However, we think the underlying risk is more towards growth, so remaining neutral might be too risky. A better strategy could involve selling out-of-the-money puts below the new 1.1625 support level or creating a bullish risk reversal. This aligns with the view that while a major breakout is unlikely, the floor for the currency pair has moved up. **Supporting Economic Data** Recent economic data supports this market view. The European Central Bank kept rates steady in its last meetings last year as Eurozone inflation dropped to 2.4% by November. This lack of a strong push from the ECB is likely limiting the Euro’s short-term growth potential. At the same time, the US economy remains strong, adding 210,000 jobs in December 2025—more than expected. This strength provides a solid foundation for the dollar, explaining why the Euro struggles to convincingly break above the 1.1770 level we saw recently. A similar price compression occurred during the summer of 2025 before the pair moved higher in fall. Currently, implied volatility on one-month EUR/USD options is below 6%, showing the market’s expectation of continued range-bound trading. Therefore, selling premium seems more appealing than buying it, as long as risks are managed against a sudden breakout.

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