EUR/USD: Little chance to reach 1.0850 – UOB Group
|Instead of continuing to rise, the Euro (EUR) is more likely to trade in a sideways range of 1.0750/1.0815, but increase in momentum suggests further EUR strength. It is too early to determine if it can reach the major resistance at 1.0850, UOB Group analysts Quek Ser Leang and Peter Chia note.
Rangebound for the time being
24-HOUR VIEW: “Yesterday, we held the view that EUR ‘is expected to drift higher.’ We were also of the view that ‘any advance is unlikely to reach the major resistance at 1.0785.’ However, EUR broke above 1.0785, soared to 1.0816, and then pulled back to close at 1.0786 (+0.39%). The sharp and swift rally appears to be overdone. This combined with overbought conditions suggests that instead of continuing to rise, EUR is more likely to trade in a sideways range of 1.0750/1.0815.”
1-3 WEEKS VIEW: “In our latest narrative from Monday (01 Jul, spot at 1.0735), we highlighted that EUR 'is likely to trade in a range for now, probably between 1.0680 and 1.0785.' We did not anticipate the ease in which EUR broke above 1.0785 yesterday, as it soared to a high of 1.0816. While the increase in momentum suggests further EUR strength, it is too early to determine if it can reach the major resistance at 1.0850. All in all, we will hold a slightly positive EUR view as long as it remains above the ‘strong support’ level, currently at 1.0730.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.