Euro (EUR) is anticipated to consolidate between 1.1305 and 1.1375 towards US Greenback (USD). Within the longer run, upward momentum has principally dissipated; EUR is prone to commerce in a 1.1255/1.1420 vary for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Upward momentum has principally dissipated
24-HOUR VIEW: “EUR rose to 1.1418 on Monday after which eased off. Yesterday, Tuesday, we highlighted the next: ‘Though upward momentum is slowing, there may be scope for EUR to edge increased at present. Nonetheless, any advance is probably going a part of a 1.1360/1.1420 vary.’ Our view was incorrect, as after rising to 1.1407, EUR fell and examined the sturdy help stage at 1.1320 (low of 1.1321). Regardless of declining, EUR has not gained a lot momentum. Immediately, we anticipate EUR to consolidate, doubtless between 1.1305 and 1.1375.”
1-3 WEEKS VIEW: “We turned constructive in EUR a couple of week in the past. Yesterday (27 Could), when EUR was at 1.1390, we indicated that ‘A decisive break above 1.1435 may push EUR to 1.1475, with potential for additional positive factors.’ We additionally indicated that ‘Conversely, ought to EUR break under 1.1320 (‘sturdy help’ stage), it might imply that the EUR power has come to an finish.’ We did anticipate EUR to drop and check the ‘sturdy help’ stage because it reached a low of 1.1321. Though the ‘sturdy help’ has not been clearly breached but, upward momentum has principally dissipated. From right here, we anticipate EUR to commerce in a variety, almost definitely between 1.1255 and 1.1420. Wanting forward, so long as there isn’t any clear break under 1.1255, EUR may see one other push increased afterward.”
