The Euro (EUR) could edge higher; as upward momentum is not strong, any advance is unlikely to break above 1.0960. If EUR breaches 1.0875, it would mean that the likelihood of it rising to 1.1010 has faded, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Predominantly flat on the day

24-HOUR VIEW: “We expected EUR to consolidate between 1.0895 and 1.0930 yesterday. However, EUR edged to a high of 1.0939 before closing higher at 1.0931 (+0.12%). There has been a slight increase in momentum, and USD could continue to edge higher today. As upward momentum is not strong for now, any advance is unlikely to break the resistance at 1.0960. On the downside, should EUR breach 1.0905 (minor support is at 1.0920), it would indicate that the current mild upward pressure has eased.”

1-3 WEEKS VIEW: “After EUR surged to a high of 1.1008 and then pulled back, we indicated last Tuesday (06 Aug, spot at 1.0955) that EUR ‘is still positive, but it has to surpass 1.1010 before further advance to 1.1070 can be expected.’ EUR subsequently traded mostly sideways. Yesterday (12 Aug, spot at 1.0915), we indicated that if EUR breaches the ‘strong support’ level at 1.0875, it would mean the likelihood of it rising to 1.1010 has faded. Our view remains unchanged.”

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD tests 1.0450 on the road to recovery, PMIs eyed

EUR/USD tests 1.0450 on the road to recovery, PMIs eyed

EUR/USD holds higher ground near 1.0450 in the early European session on Friday, bolstered by renewed US Dollar weakness. The preliminary reading of the HCOB Purchasing Managers Index for January from the Eurozone and Germany now remains in focus.

EUR/USD News
USD/JPY remains heavy below 155.50 after BoJ's hawkish rate hike

USD/JPY remains heavy below 155.50 after BoJ's hawkish rate hike

USD/JPY is posting sizeable losses while below 155.50 in early Europe on Friday. The pair remains heavy after the Bank of Japan's rate hike to 0.50%. Higher inflation forecasts by the BoJ signals further rate hikes in the offing, lending support to the Japanese Yen ahead of Governor Ueda's presser. 

USD/JPY News
Gold price bulls retain control near multi-month peak amid Fed rate cut bets

Gold price bulls retain control near multi-month peak amid Fed rate cut bets

Gold price catches fresh bids on Friday and builds on over a one-month-old uptrend. Worries about a fresh wave of global trade wars underpin the safe-haven commodity. Bets for more Fed rate cuts weigh on the USD and further benefit the XAU/USD pair.

Gold News
Ripple's XRP faces risk of 20% drawdown as short-term holders show signs of weakness

Ripple's XRP faces risk of 20% drawdown as short-term holders show signs of weakness

XRP investors realized over $500 million in profits in the past 48 hours. Short-term holders are responsible for most of the selling activity following CME's clarification on XRP futures.

Read more
Federal Reserve set for an extended pause

Federal Reserve set for an extended pause

After 100bp of rate cuts the Fed has signalled it needs evidence of economic weakness and more subdued inflation prints to justify further policy loosening. President Trump’s low tax, light-touch regulation policies should be good news for growth.

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures