Euro (EUR) is likely to trade in a range, probably between 1.0345 and 1.0440. In the longer run, current price action is part of a recovery phase that could extend to 1.0480, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Recovery phase can extend to 1.0480

24-HOUR VIEW: “EUR surged two days ago. Yesterday, we pointed out that ‘there is potential for EUR to rise above 1.0440.’ Our view did not materialize, as EUR swung between 1.0341 and 1.0435, closing at 1.0429 (+0.14%). There has been no further increase in momentum. Today, EUR is likely to trade in a range, probably between 1.0345 and 1.0440.”

1-3 WEEKS VIEW: “Yesterday (21 Jan), when EUR was at 1.0415, we indicated that ‘the current price action is part of a recovery phase that could extend to 1.0480.’ There is no change in our view, as long as 1.0320 (‘strong support’ level was at 1.0305 yesterday) is intact.”