In the opinion of the currency strategists of UOB Group, Quek Ser Leang and Peter Chia, the recent strong rise in the EUR/USD could extend to the 1.0750 zone In the next weeks.
24 hour outlook: “Although we expected the euro to strengthen yesterday, we were of the opinion that a sustained rally above 1.0605 was unlikely. We did not anticipate the sudden jump in the euro that took it to a high of 1.0697. The rapid rally is overbought, but there is room for EUR continues to advance However, the main resistance at 1.0750 is unlikely to be threatened for now (there is another resistance level at 1.0715). To the downside, a break of 1.0630 (minor support is at 1.0660) would indicate that the current upside pressure has eased.”
Next 1-3 weeks: “Yesterday (May 23, pair at 1.0570), we highlighted that the corrective euro bounce had room to extend, but 1.0645 was expected to offer solid resistance. Our view of a stronger euro was not wrong, but it was not we expected the ease with which it broke above 1.0645 and shot up to 1.0697.The strong momentum suggests that the euro could continue to advance. next resistance level is at 1.0750. Support is at 1.0630, but only a break of 1.0580 would indicate that the upside risk has dissipated.”
Source: Fx Street
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