EUR/USD: Unlikely to break clearly above 1.0425 – UOB Group
Euro (EUR) could continue to rise, but any advance is unlikely to break clearly above 1.0425. In the longer run, outlook is unclear; EUR could trade in a broad range of 1.0250/1.0490 for the time being, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
EUR can trade in a broad range
24-HOUR VIEW: "EUR traded in a volatile manner two days ago, as it whipsawed and traded in a broad range. Yesterday, we pointed out that 'the volatile price action has resulted in a mixed outlook.' We also pointed out that EUR 'could continue to trade in a choppy manner, probably between 1.0255 and 1.0370.' EUR dipped to 1.0271 before rising to a high of 1.0387. Despite the advance, upward momentum has not increased significantly. However, EUR could continue to rise, but any advance is unlikely to break clearly above 1.0425. The major resistance at 1.0490 is unlikely to come into view. Support is at 1.0335; a breach of 1.0290 would indicate that the current upward pressure has eased."
1-3 WEEKS VIEW: "Two days ago (03 Feb, spot at 1.0245), we indicated that 'the risk is for further EUR weakness.' However, we highlighted that 'it remains to be seen if it can break and remain below 1.0100.' Yesterday, EUR rose sharply and broke above our ‘strong resistance’ of 1.0380, invalidating our view. The outlook is unclear for now, and EUR could trade in a broad range of 1.0250/1.0490 for the time being."
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FXStreet Insights Team
FXStreet
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