The Euro (EUR) is currently expected to trade in a range between 1.0910 and 1.0960, according to analysts at UOB Group. Although the outlook for the EUR remains negative in the longer run, there is a low probability of it breaking the 1.0860/1.0885 support zone. The analysts, Quek Ser Leang and Lee Sue Ann, have noted that the slowing momentum suggests that the EUR is more likely to trade within a specific range rather than weakening further.
In the 24-hour view, the EUR dropped to 1.0898 before rebounding to close at 1.0935. This rebound, coupled with oversold conditions and slowing momentum, indicates that instead of weakening further, the EUR is more likely to trade within a range of 1.0910 and 1.0960. The analysts suggest that there has been a slight increase in momentum but it remains to be seen if there is enough momentum to break the major support at 1.0900.
Looking ahead to the 1-3 week view, the analysts turned negative on the EUR when it was trading at 1.1065. They have since indicated that the outlook for the EUR remains negative, with the next level to watch being 1.0900. Despite the negative outlook, downward momentum appears to be slowing, and the probability of the EUR breaking the significant support zone between 1.0860 and 1.0885 is currently low. However, a breach of 1.0995 would indicate that the weakness in the EUR has stabilized.
Overall, while the outlook for the EUR remains negative in the longer run, there is a low probability of it breaking the 1.0860/1.0885 support zone in the near term. The analysts at UOB Group suggest that the EUR is more likely to trade within a range of 1.0910 and 1.0960, with slowing momentum indicating a potential stabilization of weakness. With a breach of 1.0995 needed to confirm a stabilization of weakness, the EUR is expected to continue trading within the specified range for the time being.
