Euro (EUR) is expected to continue to range trade, likely between 1.1145 and 1.1235. In the longer run, EUR is likely to consolidate between 1.1100 and 1.1290 for the time being, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
EUR is likely to consolidate for the time being
24-HOUR VIEW: “Two days ago, EUR rose briefly to 1.1265 and then pulled back sharply. Yesterday, when EUR was at 1.1180, we pointed out that ‘There has been no increase in either upward or downward momentum.’ We were of the view that EUR ‘is likely to trade in a 1.1130/1.1230 range.’ Our view of range trading was not wrong, though EUR traded in a quiet manner within a narrower range of 1.1169/1.1228. Momentum indicators remain flat, and we continue to expect range trading, likely between 1.1145 and 1.1235.”
1-3 WEEKS VIEW: “We revised our view from negative to neutral yesterday, 15 May (spot at 1.1180), indicating that EUR ‘has likely entered a consolidation phase.’ We also indicated that ‘For the time being, we expect it to trade between 1.1100 and 1.1290.’ There is no change in our view.”