Euro (EUR) is likely to trade in a range between 1.1625 and 1.1665. In the longer run, upward momentum is starting to slow; a break below 1.1615 would indicate that EUR is not advancing further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
EUR is likely to trade in a range between 1.1625 and 1.1665
24-HOUR VIEW: “When EUR was at 1.1640 last Friday, we indicated that ‘the current price movements are likely part of a range-trading phase’, and we expected EUR to ‘trade between 1.1625 and 1.1670’. We were not wrong, as EUR traded in a range of 1.1627/1.1671, closing marginally lower by 0.01% at 1.1642. Momentum indicators remain flat, and today, we expect EUR to trade in a range between 1.1625 and 1.1665.”
1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (04 Dec, spot at 1.1670), we stated that ‘the price action continues to suggest EUR strength’. We also highlighted that ‘the level to watch is 1.1695, followed by a firm level at 1.1730’. Since then, EUR has not been able to gain much traction on the upside. Upward momentum is starting to slow, and if EUR breaks below 1.1615 (no change in ‘strong support’ level), it would mean that the advance in EUR that started late last month has come to an end.”
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