Value motion suggests additional Euro (EUR) power, with 1.1400 now in focus, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Value motion suggests additional EUR power
24-HOUR VIEW: “EUR rose to 1.1362 on Wednesday after which pulled again. Yesterday, Thursday, we identified that ‘the pullback in overbought situations suggests EUR is unlikely to strengthen a lot additional.’ We had been of the view that EUR ‘is extra more likely to consolidate between 1.1290 and 1.1365.’ Nevertheless, slightly than consolidating, EUR dropped to 1.1253 within the NY session. EUR closed at 1.1280, down 0.43%. Regardless of the decline, there was no clear enhance in downward momentum. The present worth actions are probably a part of a spread buying and selling section, anticipated to be between 1.1255 and 1.1325.”
1-3 WEEKS VIEW: “Yesterday (22 Could, spot at 1.1325), we highlighted that ‘the worth motion suggests additional EUR power, with 1.1400 now in focus.’ We added, ‘to maintain the momentum going, EUR should maintain above 1.1235 (‘robust help’ stage).’ Whereas the next pullback within the NY session went a bit deeper than anticipated, we proceed to carry the identical view for now.”
