The Euro (EUR) is expected to trade in a range between 1.0740 and 1.0840. In the longer run, price action suggests further EUR weakness; the levels to watch are 1.0665 and 1.0600, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

EUR to trade in a range between 1.0740 and 1.0840

24-HOUR VIEW: “Yesterday, we held the view that ‘as long as 1.0800 is not breached, EUR could drop to 1.0665 before stabilisation can be expected.’ We were also of the view that ‘a sustained break below this level seems unlikely.’ Instead of dropping to 1.0665, EUR rebounded strongly, reaching a high of 1.0824 in NY trade. The strong bounce is likely part of a broader range trading phase. Today, we expect EUR to trade between 1.0740 and 1.0840.”

1-3 WEEKS VIEW: “We highlighted yesterday (07 Nov, spot at 1.0730) that the steep selloff from two days ago suggests ‘further EUR weakness.’ We pointed out, ‘The support levels to watch are 1.0665 (low in Jun) and the year-to-date low of 1.0600 in April.’ While we did not quite expect EUR to rebound strongly, we will maintain our view as long as 1.0870 is not breached (no change in ‘strong resistance’ level from yesterday).”