Market strategist Quek Ser Leang and senior economist Alvin Liew of UOB Group point out that the EUR/USD could now head towards 1.1050 in the short term.
24 hour outlook: Yesterday we highlighted that the EUR was likely to rally to 1.0955, but it was highly unlikely that the main resistance at 1.1000 was in sight. Our view was not wrong, although we did not fully anticipate the rapid build in momentum as the EUR spiked to a high of 1.0990. Momentum suggests that a break of 1.1000 will not be surprising. The next major resistance at 1.1040 is likely to be out of reach today. To maintain momentum, the Euro needs to stay above 1.0940 (minor support is at 1.0965).
Next 1-3 weeks: Yesterday (June 21, pair at 1.0920), we noted that the upside momentum had waned a bit and the EUR had to clearly break above 1.0955 in the next 1-2 days or there was a chance for a rally towards 1.1000 to decline quickly . The EUR broke above 1.0955 and shot up to 1.0990. The rejuvenated impulse indicates that there is room for the Euro to rise to 1.1050. Overall, only a break of 1.0900 (the ‘strong support’ level was at 1.0860 yesterday) would indicate that the Euro strength that started about two weeks ago has come to an end.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
