The Euro (EUR) is expected to trade within a sideways range of 1.0750 to 1.0815, despite an increase in momentum suggesting further strength. UOB Group analysts Quek Ser Leang and Peter Chia indicate it is too early to determine if the EUR can reach the major resistance at 1.0850.
Short-Term View
In the past 24 hours, the EUR exceeded expectations by breaking above the 1.0785 resistance, soaring to 1.0816 before pulling back to close at 1.0786 (+0.39%). The rapid rally appears overdone, and combined with overbought conditions, suggests the EUR is more likely to trade sideways between 1.0750 and 1.0815.
Medium-Term View
Previously, analysts anticipated the EUR to trade between 1.0680 and 1.0785. However, the recent surge to 1.0816 indicates stronger momentum. Despite this, it’s still uncertain if the EUR will reach the major resistance at 1.0850. The analysts maintain a slightly positive outlook for the EUR as long as it stays above the strong support level at 1.0730.
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