EUR/USD: Likely to face significant resistance at 1.0935 – UOB Group
|Outlook is mixed; the Euro (EUR) is expected to trade sideways, likely staying within last Friday’s range of 1.0831/1.0905. In the longer run, upward momentum is beginning to build, but any advance in EUR is likely to face significant resistance at 1.0935, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Upward momentum is beginning to build
24-HOUR VIEW: “We indicated last Friday that ‘upward momentum is building, albeit tentatively.’ We also indicated that EUR ‘could rise to 1.0905, but the major resistance at 1.0935 is unlikely to come under threat.’ In NY trade, EUR rose to 1.0905, then pulled back sharply to close at 1.0834. In early Sydney trade today, EUR gapped up. The outlook is mixed, and today, we expect EUR to trade sideways, likely remaining within last Friday’s range of 1.0831/1.0905.”
1-3 WEEKS VIEW: “Last Friday (01 Nov, spot at 1.0885), we noted that ‘upward momentum is beginning to build.’ We held the view that EUR ‘could edge higher, but any advance is expected to face significant resistance at 1.0935.’ We highlighted that ‘To maintain the buildup in momentum, EUR must remain above the ‘strong support’ level, currently at 1.0815.’ EUR subsequently rose to 1.0905, then pulled back sharply to a low of 1.0831. It gapped higher today. While the buildup in momentum has slowed after the pullback, we will continue to hold the same view as long as 1.0815 is not breached.”
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