Currency analysts from UOB Group, Quek Ser Leang and Lee Sue Ann, foresee a stable short-term outlook for the Euro (EUR), anticipating it to fluctuate between 1.0855 and 1.0905. Looking further ahead, the analysts predict a gradual upward trajectory, although reaching the 1.0915 mark may take some time.
In their 24-hour view, the analysts initially expected the EUR to trade within a narrower band of 1.0845 to 1.0900, but the currency instead climbed to a high of 1.0911. Despite closing at 1.0906 with a modest gain of 0.38%, the EUR opened lower in early Sydney trade, suggesting a potential correction from the recent sharp rise. The analysts maintain their forecast of the EUR trading in a restrained range, likely between 1.0855 and 1.0905, indicating a cautious stance on short-term movements.
Looking ahead to the 1-3 week horizon, the analysts reaffirm their view from last Friday, highlighting expectations for continued EUR appreciation. Although the upward momentum has moderated, there remains a possibility for the EUR to test the 1.0915 level. However, they caution that a breach below the strong support level of 1.0835 (previously at 1.0825) would signal a potential reversal from the EUR’s strength observed over the past week.
The analysis underscores a balanced perspective on the EUR’s near-term stability and its potential for gradual appreciation in the medium to longer term, contingent upon market conditions and technical indicators.
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