Improve in momentum is just not sufficient to point a sustained advance; Euro (EUR) is more likely to commerce in a spread of 1.1270/1.1435 for now vs US Greenback (USD), UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Momentum is just not sufficient to point a sustained advance
24-HOUR VIEW: “The next are the excerpts from our replace final Friday: “EUR surged, reaching a excessive of 1.1384 within the late NY session. The sharp rally has scope to increase, however given the deeply overbought situations, any advance is probably going half of a better vary of 1.1330/1.1415.” The next worth actions didn’t end up as we anticipated. As a substitute of buying and selling in a better vary, EUR fell from 1.1389 to 1.1312, rebounding shortly to shut at 1.1347 (-0.21%). The worth motion nonetheless seems to be a part of vary buying and selling section. Right now, we count on EUR to commerce in a spread of 1.1320/1.1390.”
1-3 WEEKS VIEW: “Our replace from final Friday (30 Could, spot at 1.1380) stays legitimate. As highlighted, the latest ‘improve in momentum is just not sufficient for a sustained advance.’ To rise in a sustained method, EUR should first break and maintain above 1.1435. In the meantime, EUR is more likely to commerce in a spread of 1.1270/1.1435.”
