The EUR is more likely to trade in the 1.0275/1.0355 range rather than continue to decline. Quek Ser Leang and Lee Sue Ann, FX analysts at UOB Group, point out that before more losses can be anticipated in the long term, EUR must break decisively below 1.0255.
The EUR/USD exchange rate is more likely to fluctuate between 1.0275 and 1.0355.
24-HOUR VIEW: "We observed yesterday that 'there has been a slight increase in downward momentum,' following the sharp pullback that followed the EUR's two-day surge to 1.0434. Although we thought that "the major support at 1.0300 is unlikely to come under threat," we still anticipated that EUR would "edge lower and test 1.0320." Although we were right to predict a lower EUR, the price action did not match our expectations, as the EUR fell to a low of 1.0273. After that, it swiftly bounced back to close at 1.0318, down 0.20%. There was no discernible increase in downward momentum as a result of the brief decline. The EUR is more likely to trade in the range of 1.0275/1.0355 today rather than falling any lower.
1-3 WEEKS VIEW: "We stated on Tuesday, January 7, at 1.0380, that 'the near-term bias is tilted to the upside, even though any advance is likely part of a higher trading range of 1.0300/1.0465.'" The EUR "is unlikely to break clearly above 1.0465," according to our opinion. The EUR briefly dropped below 1.0300 yesterday before rising again. Though tentatively, downward momentum is starting to accumulate. Before more losses are anticipated, EUR must break decisively below 1.0255 from this point on. If the "strong resistance" level, which is currently at 1.0400, is not broken, there is a greater chance that EUR will break noticeably below in the coming days.
The EUR/USD exchange rate is more likely to fluctuate between 1.0275 and 1.0355.
24-HOUR VIEW: "We observed yesterday that 'there has been a slight increase in downward momentum,' following the sharp pullback that followed the EUR's two-day surge to 1.0434. Although we thought that "the major support at 1.0300 is unlikely to come under threat," we still anticipated that EUR would "edge lower and test 1.0320." Although we were right to predict a lower EUR, the price action did not match our expectations, as the EUR fell to a low of 1.0273. After that, it swiftly bounced back to close at 1.0318, down 0.20%. There was no discernible increase in downward momentum as a result of the brief decline. The EUR is more likely to trade in the range of 1.0275/1.0355 today rather than falling any lower.
1-3 WEEKS VIEW: "We stated on Tuesday, January 7, at 1.0380, that 'the near-term bias is tilted to the upside, even though any advance is likely part of a higher trading range of 1.0300/1.0465.'" The EUR "is unlikely to break clearly above 1.0465," according to our opinion. The EUR briefly dropped below 1.0300 yesterday before rising again. Though tentatively, downward momentum is starting to accumulate. Before more losses are anticipated, EUR must break decisively below 1.0255 from this point on. If the "strong resistance" level, which is currently at 1.0400, is not broken, there is a greater chance that EUR will break noticeably below in the coming days.
