EUR/USD now seen within 1.0700-1.0750 – UOB
EUR/USD is now seen navigating within the 1.0700-1.0750 range in the next few weeks, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-hour view: Yesterday, we held the view that EUR “could dip below 1.0700 first before the risk of a rebound increases.” Our expectation did not quite materialise as it dipped to 1.0701 before recovering slightly to end the day little changed at 1.0727 (+0.07%). The price movement appears to be part of a consolidation phase. In other words, USD is likely to trade in a range today, probably between 1.0700 and 1.0750.
Next 1-3 weeks: Our update from yesterday (06 Sep, spot at 1.0725) still stands. As highlighted, EUR is likely to continue to weaken, and the next level to watch is May’s low of 1.0635. However, if EUR breaks above the ‘strong resistance’ at 1.0785 (level was at 1.0800 yesterday), it would mean that the EUR weakness that started early this week has stabilised. Meanwhile, oversold shortterm conditions could lead to a couple of consolidation first.