Momentum indicators stay flattish; Euro (EUR) is anticipated to commerce in a spread towards US Greenback (USD), probably between 1.1510 and 1.1605. Within the longer run, upward momentum has slowed considerably; a breach of 1.1480 would recommend EUR could commerce in a spread as an alternative of rising additional, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Upward momentum has slowed considerably
24-HOUR VIEW: “We famous yesterday that ‘momentum is popping flat’, and we anticipated EUR to ‘consolidate in a spread of 1.1495/1.1600.’ EUR subsequently traded in a better vary than anticipated (1.1522/1.1614) earlier than closing largely unchanged at 1.1561 (+0.08%). Momentum indicators stay flattish, and we proceed to count on vary buying and selling, probably between 1.1510 and 1.1605.”
1-3 WEEKS VIEW: “We turned optimistic on EUR final Thursday. Following the sharp pullback in EUR final Friday, we identified yesterday (16 Jun, spot at 1.1540) that ‘upward momentum has slowed considerably, and a breach of 1.1480 would recommend that EUR could commerce in a spread as an alternative of rising additional.’ EUR subsequently traded in a spread, closing largely unchanged, and there’s no change in our view.”
