Sharp rally might lengthen additional; overbought situations recommend Euro (EUR) is unlikely to interrupt clearly above 1.1620. Within the longer run, EUR is anticipated to proceed to commerce in a spread; given the rise in volatility, it’s now more likely to commerce between 1.1480 and 1.1660, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
EUR is anticipated to proceed to commerce in a spread
24-HOUR VIEW: “We acknowledged yesterday that ‘there’s a likelihood for EUR to check 1.1445.’ We additionally acknowledged that ‘the main help at 1.1400 is unlikely to return underneath menace.’ Whereas EUR dropped to a low of 1.1451 within the London session, it then rallied sharply to 1.1581. EUR continues to rise within the early Asian session immediately. The sharp rally might lengthen additional, however deeply overbought situations recommend EUR is unlikely to interrupt clearly above 1.1620. On the draw back, if EUR breaks under 1.1535 (minor help is at 1.1560), it could point out that the rally is able to take a breather.”
1-3 WEEKS VIEW: “In our most up-to-date narrative from final Thursday (19 Jun, spot at 1.1475), we highlighted that EUR ‘is more likely to commerce in a spread for now, in all probability between 1.1400 and 1.1570.’ Yesterday, EUR fluctuated in a broad vary between 1.1451 and 1.1581. Whereas EUR has moved above 1.1570, there was no important enhance in upward momentum. In the interim, we proceed to anticipate vary buying and selling, however given the rise in volatility, we now anticipate EUR to commerce in a spread of 1.1480/1.1660.”
