Sharp rally seems extreme, however there’s a likelihood for Euro (EUR) to check 1.1625 towards US Greenback (USD). Within the longer run, in the interim, EUR is more likely to commerce in a spread between 1.1435 and 1.1660, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
EUR is more likely to commerce in a spread
24-HOUR VIEW: “EUR surged to a excessive of 1.1597 final Friday. Though the sharp rally seems to be extreme, there’s a likelihood for EUR to check 1.1625. The main resistance at 1.1665 is unlikely to come into sight. Help ranges are at 1.1540 and 1.1505.”
1-3 WEEKS VIEW: “After holding a adverse EUR view for a number of days, we highlighted in our newest replace from final Thursday (31 Jul, spot at 1.1430), that EUR ‘view stays adverse and the subsequent degree to look at is at 1.1350’. We additionally indicated that ‘to take care of its robust downward momentum, EUR should maintain beneath 1.1550 (‘robust resistance’ degree).’ Within the NY session final Friday, EUR staged a pointy rally that reached a excessive of 1.1597, earlier than closing up by a big 1.48% at 1.1584. The breach of our ‘robust resistance’ has invalidated our adverse EUR view. Regardless of the robust surge, it’s too early to anticipate an additional sustained rise. In the interim, we anticipate EUR to commerce in a spread between 1.1435 and 1.1660.”
