Lee Sue Ann, economist at UOB Group, and Quek Ser Leang, a market strategist, point out that the EUR/USD it is now heading for the 1.1050 area in the short term.
24 hour perspective: We expected the EUR to strengthen yesterday, but note that given the overbought conditions, the June high near 1.1010 was unlikely to be threatened today. And we added that to maintain momentum, the Euro had to stay above 1.0925 (minor support is at 1.0945). Our view turned out to be correct as the Euro fell to 1.0942 and then rallied to a late New York high of 1.1001. Although conditions remain overbought, the strength of the Euro still shows no signs of letting up. Today the Euro is likely to break above 1.1010, but the next resistance at 1.1050 could be out of reach. Support is at 1.0975, followed by 1.0950.
Next 1-3 weeks: Yesterday we turned positive on the EUR (Jul 10, pair at 1.0965) and signaled that the level to watch is 1.1010, followed by 1.1050. The Euro hit a high of 1.1001 in New York trade, and bullish momentum remains strong. Looking ahead, If the Euro breaks above 1.1050, the next level to watch is the year-to-date high of 1.1095. To maintain momentum, the Euro should not break below 1.0905 (the “strong support” level was at 1.0870 yesterday).
Source: Fx Street
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