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EUR/USD could still visit 1.0620 – UOB

Quek Ser Leang, Market Strategist at UOB Group, and Peter Chia, a senior currency strategist, point out that a test of 1.0620 for EUR/USD in the short term is not ruled out.

24 hour perspective: “Yesterday we highlighted that the EUR seemed to have entered a consolidation phase and we expected it to trade sideways between 1.0455 and 1.0560. Our consolidation forecast was not wrong, although the EUR traded in a tighter range than expected (1.0457/1.0532 ) Sustenance has softened and, although the euro is likely to decline, it is unlikely to break the strong support at 1.0420. Resistance at 1.0495, a break of 1.0530 would indicate that the current slight bearish pressure has eased.”

Next 1-3 weeks: “Our update from yesterday (06 Dec, pair at 1.0495) is still valid. As highlighted, near-term momentum is starting to wane and the Euro is likely to consolidate for a couple of days. However, while do not break above 1.0420 (‘strong support’ level unchanged), there is still a chance, although not much, that the euro will advance to 1.0620. Looking ahead, a break of 1.0420 would indicate that the Euro strength of late last week is over.”

Source: Fx Street

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