EUR/USD: Any decline is likely limited to a test of 1.1570 – UOB Group
|The slight increase in downward momentum suggests Euro (EUR) could edge lower; any decline is likely limited to a test of 1.1570. In the longer run, EUR is expected to trade in a range between 1.1540 and 1.1640, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
EUR is expected to trade in a range
24-HOUR VIEW: "Following last Friday’s price action, we highlighted yesterday that 'the current price movements are likely part of a range-trading phase'. We expected EUR to 'trade between 1.1590 and 1.1640'. The subsequent price movements did not turn out as expected, as EUR edged lower to 1.1581 before closing at 1.1590 (-0.26%). The slight increase in downward momentum suggests EUR could continue to edge lower today. However, any decline is likely limited to a test of 1.1570. We do not expect the major support at 1.1540 to come into view. Resistance levels are at 1.1605 and 1.1620."
1-3 WEEKS VIEW: "Our latest narrative was from last Friday (14 Nov, spot at 1.1630), in which we indicated that EUR 'is expected to trade with an upward bias towards 1.1685'. However, we pointed out that 'it is too early to determine whether it can break clearly above this level'. Yesterday, EUR dipped to a low of 1.1581. Although our ‘strong support’ level at 1.1575 has not been breached yet, upward momentum has largely faded. From here, we expect EUR to trade in a range between 1.1540 and 1.1640."
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