Upward momentum is slowing, however Euro (EUR) may edge larger inside a variety of 1.1360/1.1420 vs US Greenback (USD). Within the longer run, a decisive break above 1.1435 may push EUR to 1.1475, with potential for additional positive factors, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
A decisive break above 1.1435 can push EUR to 1.1475
24-HOUR VIEW: “We highlighted yesterday that EUR ‘may check the main resistance at 1.1400, however a sustained rise above this degree is unlikely.’ We identified, ‘the subsequent main resistance at 1.1435 can be unlikely to return beneath menace.’ Our evaluation turned out to be right, as EUR rose to 1.1418 after which eased off to shut at 1.1387, up 0.20%. Though upward momentum is slowing, there’s scope for EUR to edge larger immediately. Nevertheless, any advance is probably going a part of a 1.1360/1.1420 vary. To place it one other means, EUR is unlikely to interrupt clearly above 1.1420.”
1-3 WEEKS VIEW: “Final Thursday (22 Might, spot at 1.1325), we indicated that ‘the worth motion suggests additional EUR power, with 1.1400 now in focus.’ Yesterday (26 Might), when EUR was at 1.1370, we said that ‘the probability of EUR breaking above 1.1400 is growing.’ We additionally said that ‘ought to EUR break above 1.1400, there’s a comparatively close by resistance at 1.1435.’ EUR/USD subsequently rose to a excessive of 1.1418. As said, the subsequent degree to observe is 1.1435. A decisive break above 1.1435 may push EUR to 1.1475, with potential for additional positive factors. Conversely, ought to EUR break under 1.1320 (‘robust assist’ degree was at 1.1275), it will imply that the EUR power from the center of final week (see annotations within the chart under) has come to an finish.”
