Euro (EUR) is expected to trade with an upward bias; any advance is likely limited to a test of 1.1225. 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 also expected to trade with an upward bias
24-HOUR VIEW: “When EUR was at 1.1190 in the early Asian trade last Friday, we expected it to ‘continue to range trade, likely between 1.1145 and 1.1235.’ However, EUR traded in a lower range than expected, dropping from 1.1219 to 1.1129 and then rebounded to close at 1.1163 (-0.21%). The rebound has gained some momentum, albeit not much. Today, we expect EUR to trade with an upward bias. As momentum is not strong currently, any advance is likely limited to a test of 1.1225. Support is at 1.1160; a breach of 1.1135 would mean that the current mild upward pressure has faded.”
1-3 WEEKS VIEW: “Last Thursday (15 May, spot at 1.1180), we indicated 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.”
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