EUR/USD: Further range bound on the cards – UOB
Economist Lee Sue Ann and Market Strategist Quek Ser Leang at UOB Group suggest EUR/USD is likely to navigate within the 1.0820-1.090 range in the next few weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is scope for EUR to retest the 1.0830 level before a more sustained rebound is likely’. We added, ‘breach of 1.0895 would suggest that 1.0830 is not coming back into view’. However, EUR did not retest 1.0830 as it rebounded from 1.0855 to 1.0927 before settling at 1.0910 (+0.47%). The rebound lacks momentum and EUR is unlikely to advance much further. Today, EUR is more likely to trade in a range of 1.0870/1.0940.”
Next 1-3 weeks: “Yesterday (11 Apr, spot at 1.0905), we noted that EUR ‘is under mild pressure’ and held the view that it ‘is likely to edge lower for the time being’. We did not anticipate the sharp rebound to 1.0927. While our ‘strong resistance’ level at 1.0940 is not yet breached; downward pressure has more or less fizzled out. In other words, instead of edging lower, EUR is more likely to trade in a range for now, expected to be between 1.0820/1.0980.”