The Euro (EUR) is likely to trade in a relatively broad range, probably between 1.0435 and 1.0535. In the longer run, downward momentum appears to be slowing; the likelihood of EUR breaking below 1.0333 is decreasing, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Likelihood of EUR breaking below 1.0333 is decreasing

24-HOUR VIEW: “EUR dropped sharply in early Asian trade yesterday. When it was at 1.0465, we indicated that ‘downward momentum appears to be building, albeit tentatively.’ We held the view that it ‘is likely to trade with a downward bias towards 1.0420.’ However, after dropping to 1.0424, EUR soared to 1.0544 before pulling back to close at 1.0486 (-0.08%). The choppy swings provide no clarity. Overall, EUR is likely to trade in a relatively broad range today, probably between 1.0435 and 1.0535.”