Likelihood for Euro (EUR) to retest the 1.0500 stage earlier than a extra sustained restoration is probably going. Within the longer run, present value actions are seemingly a part of a spread buying and selling section, anticipated to be between 1.0465 and 1.0610, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann notice.
EUR anticipated to commerce between 1.0465 and 1.0610
24-HOUR VIEW: “Our view of sideways buying and selling yesterday was incorrect. As an alternative of buying and selling sideways, EUR fell to 1.0498 earlier than recovering to shut at 1.0526 (-0.25%). Regardless of the decline, downward momentum has not elevated a lot. That mentioned, there’s a likelihood for EUR to retest the 1.0500 stage earlier than a extra sustained restoration is probably going. The main help at 1.0465 is unlikely to return underneath menace. On the upside, resistance ranges are at 1.0545 and 1.0570.”
1-3 WEEKS VIEW: “In our most up-to-date narrative from final Friday (06 Dec, spot at 1.0585), we indicated that EUR ‘has to interrupt and stay above 1.0610 earlier than additional advance to 1.0650 is probably going.’ Yesterday, EUR dropped to a low of 1.0498. Though our ‘sturdy help’ stage of 1.0500 was solely barely breached, upward momentum has largely light. The present value actions are seemingly a part of vary buying and selling section, anticipated to be between 1.0465 and 1.0610.”
