EUR/USD: The moves towards 1.0850 – UOB Group
|The Euro (EUR) is likely to edge higher. It remains to be seen if it can reach the major resistance at 1.0850, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.
The next level to monitor above 1.0850 is at 1.0900
24-HOUR VIEW: “EUR soared two days ago. Yesterday, we indicated that ‘the sharp and swift rally appears to be overdone.’ We added, ‘Instead of continuing to rise, EUR is more likely to trade in a sideways range of 1.0750/1.0815.’ EUR subsequently traded between 1.0782 and 1.0813, closing at 1.0810 (+0.22%). There has been a slight increase in upward momentum. While EUR is likely to edge higher today, it remains to be seen if it can reach the major resistance at 1.0850. Should EUR break below 1.0770 (minor support is at 1.0790), it would indicate that the current mild upward pressure has faded.”
1-3 WEEKS VIEW: “Our update from yesterday (04 Jul, spot at 1.0785) remains valid. As indicated, 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’ at 1.0745 (level was at 1.0730 yesterday). Looking ahead, the next level to monitor above 1.0850 is at 1.0900.”
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