Euro (EUR) might doubtlessly retest 1.1495 in opposition to US Greenback (USD) and even break above this degree; slowing momentum suggests 1.1530 is probably going out of attain. Within the longer run, outlook stays constructive, but it surely stays to be seen if EUR can break clearly above 1.1530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Outlook for EUR stays constructive
24-HOUR VIEW: “EUR dipped to 1.1356 two days in the past earlier than recovering. Yesterday, when it was at 1.1425, we indicated the next: ‘The restoration has gained some momentum, and EUR might take a look at this week’s excessive, close to 1.1455. A breach of this degree shouldn’t be dominated out, however the present momentum suggests a sustained rise above this degree is unlikely. Any additional advance can be unlikely to succeed in the foremost resistance at 1.1495.’ Our directional name was appropriate, however EUR rose greater than anticipated, nearly reaching 1.1495 (excessive of 1.1494). It then pulled again from the excessive to shut at 1.1444 (+0.24%). Whereas upward momentum is slowing, EUR might doubtlessly retest 1.1495 and even break above this degree. That mentioned, given the shortage of sturdy momentum, any advance above 1.1495 is unlikely to succeed in the following main resistance at 1.1530. Assist ranges are at 1.1425 and 1.1395.”
1-3 WEEKS VIEW: “Our newest narrative was from Tuesday (03 Jun, spot at 1.1445). In that replace, we revised our EUR outlook to constructive, and we indicated that “the rapid ranges to observe are 1.1495 and 1.1530.” Yesterday, Thursday, EUR popped to inside one pip of 1.1495, pulling again shortly from 1.1494. Though upward momentum has not elevated a lot additional, the outlook for EUR stays constructive. All in all, so long as the ‘sturdy help’ at 1.1365 (degree beforehand at 1.1345) shouldn’t be breached, EUR might rise additional. Nevertheless, it stays to be seen if it might break clearly above 1.1530.”
