EUR may rise above 1.1290; the present momentum suggests any additional advance is unlikely to achieve 1.1320. Within the longer run, enhance in momentum just isn’t adequate to recommend a sustained advance; EUR should first break decisively above 1.1290, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Under 1.1200, the upside potential to dissipate
24-HOUR VIEW: “EUR rose to 1.1288 on Monday after which pulled again. Yesterday, Tuesday, we said that ‘there’s a probability for a retest of the 1.1290 stage earlier than a extra sustained pullback is probably going’, however we have been of the view that ‘a transparent break above 1.1290 seems unlikely.’ We identified that ‘ought to EUR break beneath 1.1195 (minor assist is at 1.1215), it could recommend that it’s extra prone to commerce in a spread as a substitute of retesting 1.1290.’ EUR then dipped to 1.1216, rebounding to achieve a excessive of 1.1285 within the late NY session earlier than closing at 1.1282 (+0.36%). As a result of slight enhance in upward momentum, EUR may rise above 1.1290 at this time. Additional advance just isn’t dominated out, however primarily based on the present momentum, EUR is unlikely to achieve 1.1320. Assist ranges have moved larger to 1.1260 and 1.1235.”
1-3 WEEKS VIEW: “Following EUR’s rise to 1.1288 two days in the past, we indicated in our replace yesterday (20 Could, spot at 1.1235) that ‘The rise in momentum just isn’t adequate to recommend a sustained advance.’ We identified that EUR ‘should first break decisively above 1.1290 earlier than a
transfer to 1.1330 may be anticipated.’ EUR then rose to 1.1285 and closed at 1.1282. Whereas upward momentum has improved additional, we desire to see a each day shut above 1.1290 earlier than anticipating a sustained advance to 1.1350. On the draw back, ought to EUR break beneath 1.1200 (‘robust assist’ stage was at 1.1165 yesterday), it could point out that the upside potential has dissipated.”
