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EUR/USD: EUR can rise to 1.0905– UOB Group

The Euro (EUR) could rise to 1.0905; the major resistance at 1.0935 is unlikely to come under threat. In the longer run, upward momentum is beginning to build, but any advance is EUR is likely to face significant resistance at 1.0935, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.          

EUR is likely to face significant resistance at 1.0935

24-HOUR VIEW: “EUR rose and closed higher for the fourth straight day yesterday (1.0883, +0.26%). Upward momentum is building, albeit tentatively. Today, EUR could rise to 1.0905. As upward momentum is not strong for now, the major resistance at 1.0935 is unlikely to come under threat. Support is at 1.0865, followed by 1.0845.”

1-3 WEEKS VIEW: “We shifted from a negative to neutral stance in EUR two days ago (30 Oct, spot at 1.0820), indicating that ‘the month-long decline has come to an end.’ We held the view that EUR ‘is expected to trade in a 1.0760/1.0885 range for the time being.’ Yesterday, EUR rose slightly above the top of our expected range, reaching a high of 1.0887. Upward momentum is beginning to build. From here, EUR could edge higher, but any advance is expected to face significant resistance at 1.0935. To maintain the buildup in momentum, EUR must remain above the ‘strong support’ level, currently at 1.0815.”

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