Euro (EUR) is predicted to consolidate in a variety of 1.1495/1.1600. EUR surged to 1.1631 final Thursday. Within the longer run, upward momentum has slowed considerably; a breach of 1.1480 would counsel EUR might commerce in a variety as a substitute of rising additional, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Upward momentum has slowed considerably
24-HOUR VIEW: “On Friday, when EUR was at 1.1595, we highlighted the next: ‘Situations are deeply overbought, and whereas EUR might rise above 1.1631, any additional advance is probably going half of a better vary of 1.1530/1.1640.’ The next worth actions did end up as we anticipated, as EUR pulled again sharply to 1.1488 earlier than rebounding to shut down by 0.27% at 1.1552. Upward momentum is popping flat, and in the present day, we count on EUR to consolidate in a variety of 1.1495/1.1600.”
1-3 WEEKS VIEW: “Final Thursday (12 Jun, spot at 1.1495), we revised our EUR outlook to optimistic, however we indicated that ‘it’s too early to inform if there may be sufficient momentum for EUR to succeed in final month’s excessive, close to 1.1575.’ After EUR soared above 1.1575, we indicated on Friday (13 Jun, spot at 1.1595) that EUR ‘is prone to proceed to rise, and the degrees to look at are 1.1640 and 1.1700.’ We added, ‘if EUR had been to interrupt beneath 1.1480 (‘robust assist’ stage), it might point out that the fast upward strain has eased.’ We didn’t count on EUR to drag again sharply to 1.1488. Upward momentum has slowed considerably, and a breach of 1.1480 would counsel that EUR might commerce in a variety as a substitute of rising additional.”
