Analysts from UOB Group anticipate the Euro (EUR) entering a consolidation phase, with expectations that it will trade within a range of 1.0670 to 1.0800 in the near term.
In the short term, the Euro unexpectedly rebounded to a high of 1.0746, surpassing initial forecasts for range-bound trading. While this rapid advance nears overbought levels, analysts suggest there is potential for EUR to reach 1.0760 before stabilizing. However, significant resistance at 1.0800 is not anticipated to be breached. Support levels on the downside are identified at 1.0715 and 1.0695.
Looking ahead over the next 1-3 weeks, UOB Group maintains a cautious outlook, indicating that EUR could retest the 1.0665 level. Despite falling close to this mark recently (1.0668 last Friday), the breach below 1.0665 remains pivotal for further downward movement. The recent rebound and breach above 1.0740 (reaching 1.0746) indicate a potential shift in bias, suggesting the Euro has entered a phase of consolidation. During this period, EUR is expected to maintain its range between 1.0670 and 1.0800.
The analysis underscores the current uncertainty in EUR trading dynamics, influenced by technical levels and market sentiment, guiding expectations for its short-term movements within the specified range.
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