EUR/USD: Continues to trade in a choppy manner – UOB Group
|Euro (EUR) could continue to trade in a choppy manner, probably between 1.0255 and 1.0370. In the longer run, risk is for further EUR weakness; it remains to be seen if it can break and remain below 1.0100, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Risk is for further EUR weakness
24-HOUR VIEW: “EUR gapped lower and plummeted when it opened yesterday. We noted that ‘while it is already oversold, the weakness has not stabilized, and EUR could continue to decline.’ We pointed out ‘support levels are at 1.0175 and 1.0100, and the latter level is likely out of reach for now.’ The subsequent price movements did turn out as we expected. EUR fell to 1.0210 before soaring to close at 1.0344 (-0.17%). The volatile price action has resulted in a mixed outlook. Today, EUR could continue to trade in a choppy manner, probably between 1.0255 and 1.0370.”
1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (03 Feb, spot at 1.0245). As indicated, ‘the risk is for further EUR weakness.’ However, we highlighted that ‘it remains to be seen if it can break and remain below 1.0100.’ Overall, only a breach of 1.0380 (no change in ‘strong resistance’ level) would indicate that the weakness in EUR has stabilized.”
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