Euro (EUR) is prone to rise additional; overbought situations counsel 1.1495 is out of attain for now. Within the longer run, EUR outlook is revised to constructive; the rapid ranges to look at are 1.1495 and 1.1530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Overbought situations counsel 1.1495 is out of attain for now
24-HOUR VIEW: “Our view for EUR to ‘commerce in a variety of 1.1320/1.1390’ yesterday was incorrect. As an alternative of vary buying and selling, EUR soared, closing 0.68% larger at 1.1441. Unsurprisingly, the rally has led to a pointy enhance in upward momentum. Whereas EUR is prone to rise additional at the moment, deeply overbought situations counsel that 1.1490 is out of attain for now. Word that there’s one other resistance degree at 1.1470. On the draw back, any pullback is prone to maintain above 1.1390, with minor assist at 1.1415.”
1-3 WEEKS VIEW: “Final Friday (30 Might, spot at 1.1380), we highlighted that the latest ‘enhance in momentum is just not sufficient for a sustained advance.’ We additionally highlighted that ‘To rise in a sustained method, EUR should first break and maintain above 1.1435, and in the meantime, EUR is prone to commerce in a variety of 1.1270/1.1435.’ Yesterday, in a pointy transfer, EUR soared, closing above 1.1435 at 1.1441 (+0.68%). Given this improvement, we’re revising our EUR outlook to constructive. The rapid ranges to look at are 1.1495 and 1.1530. We are going to keep our constructive view so long as the ‘sturdy assist’ degree, at present at 1.1345, is just not breached.”
