The present Euro (EUR) worth actions are probably a part of a consolidation part between 1.1585 and 1.1705, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Present worth actions are probably a part of a consolidation part
24-HOUR VIEW: “Following EUR’s rise to 1.1730 on Wednesday, we indicated yesterday (Thursday), that ‘additional EUR energy shouldn’t be dominated out, however overbought circumstances and a tentative slowing of upward momentum counsel any advance is unlikely to threaten the resistance at 1.1755.’ Nonetheless, as an alternative of strengthening additional, EUR dropped sharply to a low of 1.1630. The decline appears extreme, and EUR is unlikely to weaken a lot additional. At this time, EUR is extra more likely to commerce in a spread between 1.1615 and 1.1675.”
1-3 WEEKS VIEW: “Two days in the past (13 Aug, spot at 1.1675), we indicated the next: ‘Upward momentum is beginning to construct once more, however right now, it isn’t sufficient to counsel a sustained rise. For a continued advance, EUR should first shut above 1.1705.’ After EUR rose and closed at 1.1704, we indicated yesterday (14 Aug, spot at 1.1705) that ‘Though we’d have most popular a extra decisive shut above 1.1705, the worth motion suggests there may be scope for EUR to rise towards 1.1755.’ We didn’t anticipate the sharp pullback that broke under our ‘robust help’ stage at 1.1645 (low of 1.1630). The breach of the ‘robust help’ signifies that upward momentum has light. The present worth actions are probably a part of a consolidation part between 1.1585 and 1.1705.”
