The recent strength of the Euro (EUR) appears to have subsided, with UOB Group FX strategists Quek Ser Leang and Peter Chia projecting it to trade within a range of 1.0845 to 1.0945 for the time being.
Rangebound Outlook
24-Hour View: “We anticipated the EUR to trade sideways between 1.0885 and 1.0935 last Friday. However, it dipped to 1.0874 before closing at 1.0877 (-0.17%). As trading opened today, the EUR demonstrated a firm note. This price action did not amplify downward momentum; instead, it slightly improved upward momentum. Moving forward, unless the EUR breaks below 1.0875 (with minor support at 1.0885), it could edge higher. Despite the lackluster momentum, a sustained break above 1.0920 remains unlikely.”
1-3 Weeks View: “Last Friday (19 Jul, spot at 1.0900), we noted a rapid loss in momentum and indicated that a break below 1.0885 would signal the end of the EUR strength that began two weeks ago. Subsequently, the EUR dropped below 1.0885, hitting a low of 1.0874. This current price action suggests the EUR is likely entering a range-trading phase. For now, we expect it to fluctuate between 1.0845 and 1.0945.”
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