The pair EUR/USD is now seen trading between 1.0180 and 1.0379 in the coming weeks, notes Lee Sue Ann, economist at UOB Group, and Quek Ser Leang, Market Strategist.
24 hour perspective: “Our view that the euro will weaken further was incorrect as it bounced strongly to a high of 1.0307 before closing on a firm note at 1.0302 (+0.60%). The bounce seems to have room to extend, but the main resistance at 1.0375 is unlikely to come into play (there is another strong resistance at 1.0325). Support is at 1.0280, a break of 1.0260 would indicate that the euro does not advance further.”
Next 1-3 weeks: “Yesterday (Nov 22, pair at 1.0240) we highlighted that the Euro pullback could extend to 1.0150. We did not expect the strong bounce to a high of 1.0307. Although our ‘strong resistance’ level at 1.0325 has not been broken, the Bearish momentum has subsided considerably.In other words, rather than a deeper pullback, the current price move is likely part of a broader consolidation phase and the Euro is more likely to trade for the time being. within a range of 1.0180/1.0375.”
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.
