EUR/USD: Above 1.0610 EUR is likely to move towards 1.0650 – UOB Group

Further sideways trading in Euro (EUR) seems likely, probably between 1.0525 and 1.0585. In the longer run, EUR has to break and remain above 1.0610 before further advance to 1.0650 is likely, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Further sideways trading in EUR seems likely

24-HOUR VIEW: “After EUR rose to 1.0629 last Friday, and then pulled back, we indicated yesterday that ‘upward pressure appears to have eased.’ We were of the view that EUR ‘may trade sideways between 1.0530 and 1.0590.’ Our view was not wrong, even though EUR traded in a slightly wider range of 1.0531/1.0594, closing at 1.0552 (-0.15%). Further sideways trading seems likely today, probably between 1.0525 and 1.0585.”

1-3 WEEKS VIEW: “Our update from last Friday (06 Dec, spot at 1.0585) remains valid. As indicated previously, EUR ‘has to break and remain above 1.0610 before further advance to 1.0650 is likely.’ On the downside, should EUR break below 1.0500 (no change in ‘strong support’ level), it would mean that the likelihood of EUR breaking clearly above 1.0610 has faded. Looking ahead, the next level to watch above 1.0610 is 1.0650.”