Softer underlying tone suggests Euro (EUR) is likely to edge lower within a range of 1.1625/1.1660. In the longer run, the current price movements are likely part of a 1.1580/1.1690 range-trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Current price movements are likely part of a range-trading phase
24-HOUR VIEW: “Yesterday, EUR traded in a relatively quiet manner between 1.1637 and 1.1675, closing modestly lower by 0.09% at 1.1640. While the softer underlying tone suggests EUR could edge lower today, any decline is likely part of a lower range of 1.1625/1.1660. In other words, EUR is unlikely to break clearly below 1.1625.”
1-3 WEEKS VIEW: “In our latest update from last Friday (17 Oct, spot at 1.1695), we highlighted that ‘upward momentum is building, but EUR must break and close above 1.1720 before a move toward 1.1760 can be expected.’ We added, ‘the likelihood of EUR breaking clearly above 1.1720 will remain intact as long as it holds above the ‘strong support’ level, now at 1.1625.’ EUR subsequently rose to a high of 1.1729 and then retreated. Although our ‘strong support’ level at 1.1625 has not been breached yet, the buildup in upward momentum has faded. The current price movements are likely part of a range-trading phase, expected to be within a range of 1.1580/1.1690.”
