Outlook is unclear; Euro (EUR) could continue to trade in a choppy manner vs US Dollar (USD), probably between 1.0810 and 1.0955. In the longer run, bias for EUR is on the upside; the 1.0955/1.0985 zone is expected to offer solid resistance, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
EUR can continue to trade in a choppy manner
24-HOUR VIEW: “We expected EUR to “trade in a lower range of 1.0770/1.0820” yesterday. EUR subsequently dipped to 1.0779, but during the late NY session, it swung wildly before closing at 1.0855 (+0.57%). The outlook is unclear after the volatile price action. Today, EUR could continue to trade in a choppy manner, probably between 1.0810 and 1.0955.”
1-3 WEEKS VIEW: “Two days ago (01 Apr, spot at 1.0815), we pointed out that “the current price movements are likely part of a range trading phase, and EUR is expected to trade in a 1.0730/1.0845 range for now.” Yesterday, in a sudden move, EUR jumped, reaching a high of 1.0924. While there has been an increase in upward momentum, it is too early to expect a significant rise for now. Overall, the bias for EUR is on the upside but note that the 1.0955/1.0985 zone is expected to offer solid resistance. To sustain the momentum, EUR must remain above 1.0770.”
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