Euro (EUR) might take a look at the key resistance at 1.1400; a sustained rise above this degree is unlikely. Within the longer run, the probability of EUR breaking above 1.1400 is rising; the following resistance is close by at 1.1435, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
A sustained rise above 1.1400 is unlikely
24-HOUR VIEW: “EUR dropped to 1.1253 final Thursday. On Friday, we highlighted that ‘regardless of the decline, there was no clear improve in downward momentum.’ We added, ‘The present value actions are seemingly a part of a variety buying and selling section, anticipated to be between 1.1255 and 1.1325.’ As a substitute of buying and selling in a variety, EUR soared to 1.1374, dropped sharply, however briefly, earlier than recovering to finish the day at 1.1365 (+0.74%). Though the sharp drop has slowed the upward momentum considerably, EUR might take a look at the key resistance at 1.1400 at the moment. Based mostly on the present momentum, a sustained rise above this degree is unlikely. The subsequent resistance at 1.1435 can also be unlikely to come back underneath menace. Help ranges are at 1.1350 and 1.1325.”
1-3 WEEKS VIEW: “In our most up-to-date narrative from final Thursday (22 Could, spot at 1.1325), we indicated that ‘the value motion suggests additional EUR power, with 1.1400 now in focus.’ We added, ‘to maintain the momentum going, EUR should maintain above 1.1235 (‘sturdy help’ degree).’ On Friday, EUR rose to 1.1374. Given the bettering momentum, the probability of EUR breaking above 1.1400 is rising. Ought to EUR break above 1.1400, there’s a comparatively close by resistance at 1.1435. On the draw back, the ‘sturdy help’ degree is at the moment at 1.1275, up from 1.1235 beforehand.”
