EUR/USD is now seen within 1.0260 and 1.0430 – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, EUR/USD is now expected to trade between 1.0260 and 1.0430 in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that EUR ‘could drop to 1.0300’. However, EUR traded between 1.0318 and 1.0394 before closing slightly lower at 1.0327 (-0.10%). We continue to see downside risk for EUR even though the lackluster downward momentum suggests EUR is unlikely to challenge the major support at 1.0260. Resistance is at 1.0360, followed by 1.0390.”

Next 1-3 weeks: “There is no change in our view from yesterday (29 Nov, spot at 1.0345). As highlighted, the recent upward momentum has more or less dissipated. For the time being, EUR is likely to trade between 1.0260 and 1.0430. Looking ahead, if EUR breaks clearly below 1.0260, it could lead to a deeper drop.”