Additional Euro (EUR) power shouldn’t be dominated out; any advance is unlikely to threaten the resistance at 1.1755. Within the longer run, value motion suggests there may be scope for EUR to rise towards 1.1755, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
EUR power shouldn’t be dominated out
24-HOUR VIEW: “We anticipated EUR to ‘consolidate in a variety of 1.1645/1.1705’ yesterday. As a substitute of consolidating, EUR rose to a excessive of 1.1730 earlier than easing to shut at 1.1704. Additional EUR power shouldn’t be dominated out, however overbought situations and a tentative slowing of upward momentum counsel any advance is unlikely to threaten the resistance at 1.1755. Help is at 1.1685; a breach of 1.1670 would point out that EUR is prone to vary commerce as an alternative of continuous to strengthen.”
1-3 WEEKS VIEW: “We revised our stance from optimistic to impartial two days in the past (12 Aug, spot at 1.1615), indicating that EUR ‘has possible entered a consolidation section, and it’s prone to commerce between 1.1540 and 1.1685.’ After EUR rose to a excessive of 1.1697, we highlighted the next yesterday (13 Aug, spot at 1.1675): ‘Upward momentum is beginning to construct once more, however right now, it isn’t sufficient to counsel a sustained rise. For a continued advance, EUR should first shut above 1.1705. The likelihood of EUR closing above 1.1705 will stay in place supplied that the ‘robust assist’ degree, presently at 1.1615 holds.’ EUR subsequently closed at 1.1704, up by 0.27%. Though we might have most popular a extra decisive shut above 1.1705, the worth motion suggests there may be scope for EUR to rise towards 1.1755. On the draw back, the ‘robust assist’ degree is now at 1.1645 as an alternative of 1.1615.”
