Euro (EUR) is predicted to commerce in a spread between 1.1690 and 1.1760 towards US Greenback (USD). Within the longer run, EUR energy from late final month has ended; the present pullback might lengthen to 1.1660, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
EUR energy from late final month has ended
24-HOUR VIEW: “On Monday, EUR dropped to a low of 1.1686 after which rebounded. Yesterday (Tuesday), when EUR was at 1.1745, we highlighted that ‘the rebound might lengthen, however after the sharp decline yesterday, any advance is probably going restricted to a take a look at of 1.1780.’ Nevertheless, EUR rebounded lower than anticipated to 1.1765 earlier than dropping sharply to a low of 1.1682. EUR recovered from the low to shut at 1.1724, up 0.15%. The value motion didn’t end in any improve in both downward or upward momentum. At this time, we anticipate vary buying and selling, probably between 1.1690 and 1.1760.”
1-3 WEEKS VIEW: “We revised our view from optimistic to detrimental yesterday (08 Jul, spot at 1.1745). We highlighted the next: ‘The EUR energy from late final month has ended. Whereas there was no vital improve in downward momentum, the present pullback in EUR might lengthen to 1.1660. Nevertheless, if EUR breaks above 1.1810 (‘sturdy resistance’ degree), it could imply that it’s extra more likely to commerce in a spread as an alternative of pulling again.’ Our view stays intact, however we’re decreasing the ‘sturdy resistance’ from 1.1810 to 1.1795.”
