EUR/USD: Expected to consolidate between 1.1305 and 1.1375 – UOB Group

FXStreet Insights Team FXStreet

Euro (EUR) is expected to consolidate between 1.1305 and 1.1375 against US Dollar (USD). In the longer run, upward momentum has mostly dissipated; EUR is likely to trade in a 1.1255/1.1420 range for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum has mostly dissipated

24-HOUR VIEW: "EUR rose to 1.1418 on Monday and then eased off. Yesterday, Tuesday, we highlighted the following: 'Although upward momentum is slowing, there is scope for EUR to edge higher today. However, any advance is likely part of a 1.1360/1.1420 range.' Our view was incorrect, as after rising to 1.1407, EUR fell and tested the strong support level at 1.1320 (low of 1.1321). Despite declining, EUR has not gained much momentum. Today, we expect EUR to consolidate, likely between 1.1305 and 1.1375."

1-3 WEEKS VIEW: "We turned positive in EUR about a week ago. Yesterday (27 May), when EUR was at 1.1390, we indicated that 'A decisive break above 1.1435 could push EUR to 1.1475, with potential for further gains.' We also indicated that 'Conversely, should EUR break below 1.1320 (‘strong support’ level), it would mean that the EUR strength has come to an end.' We did expect EUR to drop and test the ‘strong support’ level as it reached a low of 1.1321. Although the ‘strong support’ has not been clearly breached yet, upward momentum has mostly dissipated. From here, we expect EUR to trade in a range, most likely between 1.1255 and 1.1420. Looking ahead, as long as there is no clear break below 1.1255, EUR could see another push higher later on."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.