The Euro is under moderate downward pressure and may decline and test the 1.1600 level; A clear break below this level is unlikely. In the long term, the euro’s rally has ended since late last month; The euro is likely to trade in a range between 1.1580 and 1.1685, UOB Group FX analysts Quek Ser Leang and Peter Chia noted.
The euro is likely to trade in a range between 1.1580 and 1.1685
24-hour view: “Two days ago, the EUR closed slightly lower by 0.05% at 1.1636. Yesterday, we noted that ‘price action did not lead to any increase in bearish or bullish momentum.’ We predicted that ‘EUR would trade between 1.1615 and 1.1665.’ We were not wrong, although the EUR traded within a narrower range than expected (1.1614/1.1657), closing slightly lower at 1.1625 (-0.09%) This time, there was a slight increase in bearish momentum today, and the Euro may decline and test 1.1600, given the moderate bearish momentum, the key support at 1.1580 is also unlikely to be threatened. The 1.1660 level will indicate that the current moderate bearish pressure has subsided.”
1-3 week view: “We have maintained a positive stance for the EUR since late last month. In our latest report 2 days ago (08 Dec, spot at 1.1645), we noted that “upside momentum is starting to slow, and if the EUR falls below 1.1615 (‘strong support’ level), it will mean that EUR’s advance has come to an end.” The EUR fell to 1.1615 2 days ago, and to We have not been clearly broken yet, the bullish momentum has faded from here, we expect the Euro to trade in a range, most likely between 1.1580 and 1.1685.
