Economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group, point out that EUR/USD bullish momentum appears to be gaining traction.
24 hour perspective: Our view that the EUR would trade in a range yesterday was wrong, as it rose 0.79% (NY close at 1.0781), its biggest one-day gain in 2 1/2 months. It is not ruled out that the Euro continues to rise, but given the overbought conditions, it will be necessary to see if it can stay above 1.0800 (there is another resistance nearby at 1.0815). Support is at 1.0760, a break of 1.0740 would suggest that the current bullish pressure has eased.
Next 1-3 weeks: Yesterday (08 Jun, pair at 1.0705) we noted that the EUR would probably consolidate and trade between 1.0635 and 1.0785 for a while longer. We did not anticipate such a sharp and rapid rise, as the Euro slightly exceeded 1.0785 (1.0786 high). The bullish momentum is consolidating, albeit timidly. For now it is not clear if the Euro could rise to 1.0850. It should be noted that there is a strong resistance zone between 1.0800 and 1.0815. Overall, as long as the Euro remains above the strong support level (now at 1.0730), the bullish momentum could continue in the coming days.
Source: Fx Street
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