Euro (EUR) may pull again additional in opposition to US Greenback (USD), however any decline is probably going a part of a decrease vary of 1.1715/1.1775. Within the longer run, worth motion signifies additional EUR energy, probably towards 1.1795, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Worth motion signifies additional EUR energy
24-HOUR VIEW: “EUR rose to a excessive of 1.1775 two days in the past. Yesterday, we indicated that “whereas destructive divergence is beginning to type, EUR may edge above the 1.1795 degree earlier than a pullback may be anticipated.” Nevertheless, EUR rose lower than anticipated to a excessive of 1.1788 earlier than pulling again. Damaging divergence stays obvious, this, mixed with slowing momentum, signifies EUR may pull again additional. Nevertheless, any decline is probably going a part of a decrease vary of 1.1715/1.1775.”
1-3 WEEKS VIEW: “Two days in the past (23 Jul, spot at 1.1740), we highlighted that the current worth motion “signifies additional EUR energy, probably towards 1.1795.” After EUR rose to 1.1775, we famous yesterday that “trying forward, a transparent break above 1.1795 will shift the main target to 1.1830.” EUR subsequently rose to 1.1788 after which closed decrease for the primary time in 4 days (1.1754, -0.14%). Whereas short-term upward momentum has slowed considerably, we’ll preserve our view so long as 1.1690 (no change in ‘robust help’ degree) will not be breached.”
