Euro (EUR) is more likely to commerce in a variety between 1.1640 and 1.1700. Within the longer run, weak point in EUR from early final week has stabilized; in the intervening time, it’s more likely to consolidate between 1.1615 and 1.1730, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Weak spot in EUR from early final week has stabilized
24-HOUR VIEW: “We anticipated EUR to ‘consolidate between 1.1615 and 1.1665’ yesterday. We have been incorrect, as as an alternative of consolidating, EUR rebounded strongly to a excessive of 1.1698. The sharp rebound seems to be working forward of itself, and EUR is unlikely to rise a lot. Right now, EUR is extra more likely to commerce in a variety, in all probability between 1.1640 and 1.1700.”
1-3 WEEKS VIEW: “Final Friday, EUR dropped to a low of 1.1617. Yesterday (12 Jan, spot at 1.1635), we highlighted that EUR ‘should shut under 1.1615 earlier than a transfer to 1.1585 may be anticipated’. We didn’t anticipate EUR to rise and break above our ‘robust resistance’ stage at 1.1690 (excessive of 1.1698). The breach of the ‘robust resistance’ signifies that the decline in EUR from early final week (see annotations within the chart under) has stabilised. EUR seems to have entered a consolidation section, and in the intervening time, it’s more likely to commerce between 1.1615 and 1.1730.”
