There may be potential for Euro (EUR) to rise above 1.1765 in opposition to US Greenback (USD); overbought circumstances counsel it won’t have the ability to maintain above this stage. Within the longer run, value motion signifies additional EUR energy, doubtless towards 1.1795, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Value motion signifies additional EUR energy
24-HOUR VIEW: “Our view of consolidation yesterday was incorrect, as EUR rose sharply for the second straight day, reaching a excessive of 1.1760. Whereas there’s potential for EUR to rise above 1.1765 in the present day, overbought circumstances counsel it won’t have the ability to maintain above this stage. The subsequent resistance at 1.1795 can be unlikely to return underneath risk. To maintain the overbought momentum, EUR should maintain above 1.1700, with minor assist at 1.1720.”
1-3 WEEKS VIEW: “We revised our view to impartial final Thursday (17 Jul, spot at 1.1630). We anticipated EUR to ‘consolidate in a variety of 1.1550/1.1720 in the interim.’ After EUR rose to a excessive of 1.1716, we highlighted the next yesterday (22 Jul, spot at 1.1690): ‘Though there was a rise in upward momentum, it isn’t robust sufficient to counsel a sustained rise simply but. EUR should shut above 1.1720 earlier than a transfer to 1.1765 will be anticipated. The possibility of EUR closing above 1.1720 will stay intact so long as EUR holds above the ‘robust assist’ stage, now at 1.1620, within the subsequent few days.’ We underestimated the buildup in momentum, as EUR subsequently soared, virtually reaching 1.1765 (excessive of 1.1760). The worth motion signifies additional EUR energy, doubtless towards 1.1795. On the draw back, the ‘robust assist’ stage is now at 1.1655 as a substitute of 1.1620.”
