Current price movements likely part of a range trading – UOB Group

Current price movements likely part of a range trading – UOB Group

Chance for Euro (EUR) to retest the 1.0500 level before a more sustained recovery is likely. In the longer run, current price movements are likely part of a range trading phase, expected to be between 1.0465 and 1.0610, UOB Groups FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR expected to trade between 1.0465 and 1.0610

24-HOUR VIEW: “Our view of sideways trading yesterday was incorrect. Instead of trading sideways, EUR fell to 1.0498 before recovering to close at 1.0526 (-0.25%). Despite the decline, downward momentum has not increased much. That said, there is a chance for EUR to retest the 1.0500 level before a more sustained recovery is likely. The major support at 1.0465 is unlikely to come under threat. On the upside, resistance levels are at 1.0545 and 1.0570.”

1-3 WEEKS VIEW: “In our most recent narrative from last Friday (06 Dec, spot at 1.0585), we indicated that EUR ‘has to break and remain above 1.0610 before further advance to 1.0650 is likely.’ Yesterday, EUR dropped to a low of 1.0498. Although our ‘strong support’ level of 1.0500 was only slightly breached, upward momentum has largely faded. The current price movements are likely part of range trading phase, expected to be between 1.0465 and 1.0610.”