The Euro (EUR) strength has ended; for the time being, it is likely to trade in a range between 1.0845 and 1.0945, UOB Group FX strategists Quek Ser Leang and Peter Chia note.
Rangebound for the time being
24-HOUR VIEW: “We expected 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%). EUR traded on a firm note upon opening today. The price action did not result in any increase in downward momentum. Instead, upward momentum has improved somewhat with the firm start today. From here, barring a break below 1.0875 (minor support is at 1.0885), EUR could edge higher. Given the lackluster momentum, a sustained break above 1.0920 is unlikely.”
1-3 WEEKS VIEW: “Last Friday (19 Jul, spot at 1.0900), we noted a rapid loss in momentum. We pointed out that ‘should EUR break below 1.0885, it would mean that the EUR strength that started two weeks ago (as annotated in the chart below) has come to end.’ EUR subsequently dropped below 1.0885 (low has been 1.0874). The current price action is likely part of a range trading phase. For the time being, we expect EUR to trade between 1.0845 and 1.0945.”
