Rejuvenated momentum suggests further Euro (EUR) strength. EUR could test, but is unlikely to break clearly above the significant resistance zone between 1.0970 and 1.0980, FX analysts at UOB GroupQuek Ser Leang and Lee Sue Ann.
Bullish momentum suggests further EUR strength
24 HOURS VIEW:”Our view that the EUR would trade in a range yesterday was incorrect. Instead of trading in a range, the EUR soared, peaking at 1.0947 before closing at 1.0937 (+0.37%). Not surprisingly, the strong advance is overbought. However, as long as 1.0910 remains unbroken (with minor support at 1.0925), the EUR could test, but is unlikely to break clearly above, the significant resistance zone between 1.0970 and 1.0980.”
1-3 WEEK VIEW: “In our most recent narrative from two days ago (July 16, pair at 1.0895), we highlighted that ‘although there is still room for the EUR to rise further, the upside momentum is slowing, and it remains to be seen whether any further advance can reach 1.0940.’ We also highlighted that ‘a break of 1.0850 (with no change in the ‘strong support’ level) would mean that the EUR’s strength since the beginning of this month (as noted on the chart below) has come to an end.’ Yesterday, the EUR took off and broke above 1.0940, hitting a high of 1.0947. Rejuvenated bullish momentum suggests further EUR strength, although the 1.0970/1.0980 zone is expected to present significant resistance. On the downside, the ‘strong support’ level has risen to 1.0885 from 1.0850.”
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.
