EUR/USD: Likely to trade in a range between 1.1630 and 1.1680 – UOB Group
|Momentum indicators are turning flat; Euro (EUR) is likely to trade in a range between 1.1630 and 1.1680. In the longer run, tentative increase in downward momentum could lead to EUR edging lower and testing 1.1595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Tentative increase in downward momentum might lead EUR fownwards
24-HOUR VIEW: "EUR closed slightly lower at 1.1646 (-0.12%) two days ago. In the early Asian session yesterday, we indicated that 'we continue to detect a tentative increase in downward momentum, but this time around, it could lead to EUR breaking below 1.1630.' We added, 'based on the current momentum, EUR is unlikely to reach the next support at 1.1595.' We were not wrong, as EUR dipped to a low of 1.1621, rebounded to 1.1673 and then closed marginally higher by 0.04% at 1.1651. Momentum indicators are turning flat, and EUR is likely to trade within a range today, probably between 1.1630 and 1.1680."
1-3 WEEKS VIEW: "Yesterday (20 Aug, spot at 1.1645), we noted that 'there has been a tentative increase in downward momentum.' We highlighted that 'as long as EUR holds below the ‘strong resistance’ level, currently at 1.1705, it could edge lower and test the major support at 1.1595.' We pointed out that 'it is too early to determine whether EUR can break clearly below this level.' There is no change to our view."
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