The Euro (EUR) will likely trade in a relatively wide range, probably between 1.0435 and 1.0535. Long-term, bearish momentum appears to be slowing; The probability of the EUR breaking below 1.0333 is decreasing, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
Probability of EUR breaking below 1.0333 is decreasing
24-HOUR VIEW: “The EUR fell sharply in early Asian trading yesterday. When it was at 1.0465, we indicated that ‘bearish momentum appears to be increasing, albeit tentatively.’ We held the view that ‘it will probably trade with a bearish bias towards 1.0420.’ However, after falling to 1.0424, the EUR shot up to 1.0544 before retreating to close at 1.0486 (-0.08%). The sharp moves do not provide clarity overall, the EUR is likely to trade in a relatively range. wide today, probably between 1.0435 and 1.0535.”
1-3 WEEK VIEW: “In our latest narrative from two days ago (Nov 25, pair at 1.0475), we highlighted that ‘although EUR weakness remains intact, it must break and remain below last Friday’s low of 1.0333 before a further decline can be expected.’ We added, ‘The probability of EUR breaking below 1.0333 is not high, but will remain intact as long as 1.0560 (‘strong resistance’) is not breached in the coming days.’ Yesterday, the EUR rose to 1.0544 and then retreated. Although we continue to maintain the same view, the bearish momentum seems to be slowing down. In other words, the probability of the EUR breaking below is decreasing.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
