The Euro (EUR) is likely to trade in a range between 1.1625 and 1.1660. In the longer term, the euro is still consolidating, but will likely be in the 1.1600/1.1700 range, noted FX analysts at UOB Group, Quek Ser Liang and Peter Chia.
Euro is still consolidating
24-hour view: “When the EUR was at 1.1645 in the early Asian session yesterday, we observed a ‘slight increase in bearish momentum’. We expected the EUR to ‘head lower’, but were of the view that ‘a break of the 1.1615 area looks unlikely’.” Our view was not met, as the EUR traded in a relatively narrow range at 1.1634/1.1661, closing slightly higher by 0.01% at Trading in a range today, we expect the Euro to trade between 1.1625 and 1.1660.
1-3 week view: “Two days ago (Jan 13, spot at 1.1665), we noted that “EUR weakness since early last week has stabilized”. We highlighted that the EUR “appears to have entered a consolidation phase and, at the moment, is likely to trade between 1.1615 and 1.1730”. Price action since then still looks part of consolidation, but we now expect the EUR will trade in a lower and narrower range at 1.1600/1.1700.”
