Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia now see EUR/USD navigating within the 1.0560-1.0800 range for the time being.
24-hour view: “We expected EUR to ‘continue to edge higher’ last Friday but we were of the view that it ‘is unlikely to break strong resistance at 1.0630’. However, EUR strengthened more than expected, jumping to a high of 1.0700. Upward momentum has improved, albeit not significantly. Today, EUR could advance further to 1.0740. The major resistance at 1.0800 is not expected to come under threat. On the downside, a breach of 1.0620 (minor support is at 1.0660) would indicate that the current upward pressure has eased.”
Next 1-3 weeks: “Our latest narrative was from last Wednesday (08 Mar, spot at 1.0550) where the slight improvement in downward momentum is likely to lead to EUR gravitating lower to 1.0485. Last Friday, EUR jumped above our ‘strong resistance’ of 1.0630. The breach of the ‘strong resistance’ indicates that downward pressure has eased. We view the current price actions as part of a consolidation range and expect EUR to trade between 1.0560 and 1.0800 for the time being.”