The Euro (EUR) is expected to trade within a 1.0560 to 1.0610 range in the near term, as downward momentum begins to fade, according to UOB Group’s FX analysts, Quek Ser Leang and Lee Sue Ann. A break above 1.0610 would suggest that EUR has entered a consolidation phase, signaling a shift in the broader trend.
In the past 24 hours, after EUR traded within a range last Friday, the currency rebounded unexpectedly, rising to a high of 1.0607 before closing at 1.0599, up 0.55%. This rebound appears to be outpacing expectations, and instead of continuing its upward movement, analysts predict EUR will now trade within the 1.0560 to 1.0610 range today.
Looking at the longer-term outlook, UOB analysts turned negative on EUR on November 7, when the currency was at 1.0730. After EUR fell below the technical target of 1.0500, analysts noted last Friday that EUR’s weakness continued despite deeply oversold conditions. The next support level is seen around 1.0450, near last year’s low. However, with downward momentum fading, a decisive break of 1.0610 would indicate a shift towards consolidation for the Euro.
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