EUR/USD: Current price movements likely part of a range trading – UOB Group
|Chance for Euro (EUR) to retest the 1.0500 level before a more sustained recovery is likely. In the longer run, current price movements are likely part of a range trading phase, expected to be between 1.0465 and 1.0610, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
EUR expected to trade between 1.0465 and 1.0610
24-HOUR VIEW: “Our view of sideways trading yesterday was incorrect. Instead of trading sideways, EUR fell to 1.0498 before recovering to close at 1.0526 (-0.25%). Despite the decline, downward momentum has not increased much. That said, there is a chance for EUR to retest the 1.0500 level before a more sustained recovery is likely. The major support at 1.0465 is unlikely to come under threat. On the upside, resistance levels are at 1.0545 and 1.0570.”
1-3 WEEKS VIEW: “In our most recent narrative from last Friday (06 Dec, spot at 1.0585), we indicated that EUR ‘has to break and remain above 1.0610 before further advance to 1.0650 is likely.’ Yesterday, EUR dropped to a low of 1.0498. Although our ‘strong support’ level of 1.0500 was only slightly breached, upward momentum has largely faded. The current price movements are likely part of range trading phase, expected to be between 1.0465 and 1.0610.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.