UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang suggested EUR/USD is now likely to trade within the 1.0530-1.0670 range in the near term.
Key Quotes
24-hour view: “We highlighted yesterday that the robust rebound in EUR could extend but a sustained rise above 1.0625 is unlikely. We indicated, the next resistance is at 1.0670. EUR rose to a high of 1.0645 in NY trade and then dropped sharply to end the day lower by 0.29% (1.0576). The underlying tone has weakened somewhat and EUR is likely to edge lower today. That said, any decline is unlikely to break the major support at 1.0530 (minor support is at 1.0550). Resistance is at 1.0600, followed by 1.0625.”
Next 1-3 weeks: “Yesterday (28 Feb, spot at 1.0605), we stated that a breach of 1.0625 would suggest that the EUR weakness that started about 2 weeks ago has ended and it has moved into a consolidation phase. EUR rose to 1.0645 before dropping to close at 1.0576 (-0.29%). Downward momentum has faded and EUR is likely to consolidate between 1.0530 and 1.0670 before heading lower at a later stage.”