EUR/USD: Has a chance to rise towards 1.0885 – UOB Group
|The Euro (EUR) is expected to trade in a range between 1.0790 and 1.0840. In the longer run, month-long decline has come to an end; EUR is expected to trade in a 1.0760/1.0885 range for the time being, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Rangebound between 1.0790 and 1.0840
24-HOUR VIEW: “Yesterday, we expected EUR to ‘trade in a range, probably between 1.0790 and 1.0830.’ Our view was incorrect, as EUR fell sharply but briefly to 1.0768, rebounding to close largely unchanged at 1.0818 (+0.06%). The brief drop did not result in an increase in momentum. Today, we continue to expect EUR to trade in a range, likely between 1.0790 and 1.0840.”
1-3 WEEKS VIEW: “We turned negative in EUR early this month (see annotations in the chart below). As we tracked the decline, in our most recent narrative from last Friday (25 Oct, spot at 1.0825), we highlighted that ‘should EUR break above 1.0840, it would signal the end of the decline that started early this month.’ Yesterday, EUR dipped to 1.0768, then rebounded to a high of 1.0826. Although our ‘strong resistance’ level at 1.0840 has not been breached yet, downward momentum has largely faded. In other words, the month-long decline has come to an end. The current price movements are likely part of a range trading phase, and EUR is expected to trade between 1.0760 and 1.0885 for the time being.”
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