FX Strategists at UOB Group see EUR/USD still navigating the broad 1.0840/1.1200 range in the next weeks.
Key Quotes
24-hourv view: “Our expectation for the recovery to ‘extend higher’ was wrong as it dropped sharply to an overnight low of 1.0901 before recovering slightly. Despite the relatively rapid decline, downward momentum has not improved by as much. That said, EUR could dip below 1.0900 but in view of the lackluster momentum, the strong support at 1.0840 is unlikely to come under threat. Resistance is at 1.0990 followed by yesterday’s top near 1.1040.”
Next 1-3 weeks: “After rising to 1.1146 last Friday (27 Mar), EUR has not been able to make much headway on the upside. Upward momentum has eased and the prospect for EUR to test the top of our expected 1.0840/1.1200 range at 1.1200 has diminished. However, EUR does not appear to be ready to move below 1.0840 just yet. Overall, EUR could trade between 1.0840 and 1.1200 for a while more.”
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