The Euro (EUR) is unlikely to weaken further; it is more likely to trade in a 1.0470/1.0540 range. In the longer run, instead of a rebound, EUR is expected to trade in a range for now, most likely between 1.0430 and 1.0580, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR is expected to trade in a range for now

24-HOUR VIEW: “Yesterday, when EUR was at 1.0555, we stated that ‘The current price action is likely part of a lower trading range of 1.0520/1.0580.’ Our view was incorrect, as EUR plunged to 1.0459 before rebounding to close at 1.0497, down sharply by 0.74%. The rebound in deeply oversold conditions and slowing momentum indicate that EUR is unlikely to weaken further. Today, EUR is more likely to trade in a 1.0470/1.0540 range.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (28 Nov, spot at 1.0565), wherein EUR ‘could rebound further, potentially reaching 1.0650.’ EUR subsequently rebounded to 1.0597, but yesterday, in a sudden move, it plunged to a low of 1.0459. The breach of our ‘strong support’ level at 1.0490 indicates that instead of a rebound, EUR is expected to trade in a range for now, most likely between 1.0430 and 1.0580.”