EUR/USD: Weakness from a week ago has stabilized – UOB Group

Euro (EUR) is likely to trade in a 1.1525/1.1580 range. In the longer run, weakness from a week ago has stabilized; EUR is likely to trade in a range of 1.1485/1.1610 for the time being, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR/USD is likely to trade in a 1.1525/1.1580 range

24-HOUR VIEW: "EUR rose to a high of 1.1552 last Thursday. On Friday, when EUR was at 1.1545, we indicated that 'the advance has scope to extend to 1.1570 before a pause can be expected'. We also highlighted that 'the major resistance at 1.1605 is not expected to come under threat'. While EUR rose more than expected to 1.1591, it pulled back quickly from the high, closing modestly higher at 1.1565 (+0.16%). Upward momentum is easing, and instead of continuing to rise, EUR is more likely to trade in a 1.1525/1.1580 range today."

1-3 WEEKS VIEW: "Last Friday (07 Nov, spot at 1.1545), we revised our EUR view from negative to neutral. We indicated that 'the EUR’s weakness from a week ago has stabilized', and we expected EUR to 'trade in a range of 1.1485/1.1610 for the time being'. There is no change in our view."