Circumstances are deeply overbought; any additional advance is probably going half of a better vary of 1.1530/1.1640. Within the longer run, EUR is more likely to proceed to rise; the degrees to look at are 1.1640 and 1.1700, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
EUR is more likely to proceed to rise
24-HOUR VIEW: “Whereas we indicated yesterday that ‘there may be scope for EUR to proceed to rise’, we had been of the view that “the most important resistance at 1.1535 might be out of attain.” Nevertheless, EUR lifted off and surged to a excessive of 1.1631 earlier than closing at 1.1583 (+0.84%), its highest degree since Nov 2021. Circumstances are deeply overbought, and whereas EUR could rise above 1.1631, any additional advance is probably going half of a better vary of 1.1530/1.1640.”
1-3 WEEKS VIEW: “After EUR soared and closed 0.56% increased at 1.1487 two days in the past, we indicated yesterday (12 Jun. spot at 1.1495) that ‘given the fast buildup in upward momentum, EUR may proceed to rise in direction of 1.1535.’ Nevertheless, we identified that ‘it’s too early to inform if there may be sufficient momentum for EUR to succeed in final month’s excessive, close to 1.1575.’ EUR subsequently not solely broke above each ranges but in addition surged to a excessive of 1.1631. There was a pointy enhance in upward momentum, and EUR is more likely to proceed to rise. The degrees to look at are 1.1640 and 1.1700. On the draw back, if EUR had been to interrupt beneath 1.1480 (‘sturdy assist’ degree was at 1.1425 yesterday), it might point out that the rapid upward stress has eased.”
