UOB Group’s FX analysts, Quek Ser Leang and Peter Chia, have provided their take on the EUR/USD currency pair, suggesting that while the euro (EUR) has an upward bias, its upward movement might be capped below the 1.1050 level. In the long run, a slowdown in upward momentum indicates that the euro’s potential for further gains has lessened. A break below 1.0850 could signal that the euro has entered a range – trading phase.
Short – Term Outlook: Limited Upside in Sight
24 – Hour View
After the euro experienced choppy trading on Monday, the analysts noted on Tuesday that the price action offered no new insights. They had predicted the euro would trade between 1.0860 and 1.1030. However, the actual trading range was narrower, spanning from 1.0886 to 1.0991. Despite the relatively subdued price movements, there was a slight uptick in upward momentum. For the current day, the analysts maintain an upward bias for the euro. Nevertheless, they believe that any upward movement is unlikely to reach 1.1050, and the next significant resistance level at 1.1090 is not expected to be tested. The key support levels to watch are at 1.0950 and 1.0920.
Medium – Term Outlook: Uncertainty Looms
1 – 3 Weeks View
The analysts continue to uphold the view they presented on April 8, when the spot rate was at 1.0925. The euro’s pullback to 1.0881 on Monday led to a decline in upward momentum, reducing the likelihood of a substantial euro rally. A break below 1.0850 (the’strong support’ level remains unchanged) would suggest that instead of advancing further, the euro has entered a range – trading pattern. Looking ahead, if the euro closes above 1.1050, it would increase the probability of it retesting the month – to – date high, which is near 1.1145.
For investors eyeing the EUR/USD pair, these insights from UOB Group are valuable. The short – term prediction of a limited upside means that traders looking for quick profits from upward movements need to be cautious. In the medium – term, the possibility of the euro entering a range – trading phase or potentially retesting its monthly high requires careful monitoring of key levels.
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EUR/USD on the Slide: Approaching Key Support Levels Amid Technical Weakness
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