EUR/USD: Unlikely to break clearly above 1.1675 – UOB Group
|Euro (EUR) could rebound further, but it is unlikely to break clearly above 1.1675. In the longer run, EUR is now expected to trade in a range of 1.1580/1.1720, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
EUR is now expected to trade in a range
24-HOUR VIEW: "We expected EUR to trade in a range of 1.1610/1.1675 yesterday. The subsequent price movements did not turn out as expected, as EUR dropped sharply to 1.1573 before rebounding strongly to close largely unchanged at 1.1637 (-0.04%). The strong rebound has led to a slight increase in upward momentum, and EUR could rebound further today and test the resistance at 1.1675. Based on the current momentum, EUR is unlikely to break clearly above this level. The next resistance at 1.1720 is not expected to come under threat. On the downside, support levels are at 1.1620 and 1.1595."
1-3 WEEKS VIEW: "Our most recent narrative was from two days ago (26 Aug, spot at 1.1630), in which we highlighted that EUR “is expected to trade in a range between 1.1580 and 1.1745 for now.” Although EUR fell below 1.1580 yesterday and reached a low of 1.1573, it rebounded strongly to close largely unchanged. The brief decline did not result in any clear increase in downward momentum. We continue to expect range-trading but now expect a narrower range of 1.1580/1.1720."
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