EUR/USD: Below 1.0490 the downtrend in EUR is likely to resume – UOB Group

The Euro (EUR) is likely to trade in a range between 1.0505 and 1.0575. In the longer run, recent downtrend in EUR is likely to resume if it breaks and stays below 1.0490, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR is likely to trade in a range between 1.0505 and 1.0575

24-HOUR VIEW: “EUR dropped sharply but briefly, to 1.0523 on Tuesday. Yesterday (Wednesday), we noted that ‘The brief decline did not result in any increase in momentum.’ We expected EUR to ‘trade in a range, likely between 1.0550 and 1.0620.’ Our view turned out to be incorrect, as EUR plummeted to 1.0507, rebounding to close at 1.0543 (-0.49%). The sharp drop appears to be overdone, and EUR is unlikely to weaken much further. Today, it is more likely to trade in a range between 1.0505 and 1.0575.”