Forex Strategists UOB Group, Lee Sue Ann and Quek Ser Leang, point out that the EUR/USD will continue to rise above the 1.0800 mark.
24 hour outlook: “Yesterday we held the view that there was room for the euro to fall below 1.0625.” Our view turned out to be wrong, as the euro shot up to 1.0750 before closing strongly at 1.0745 (+0.93%). The rapid rise is accompanied by strong momentum and the euro could continue to rise. Having said that, major resistance at 1.0800 unlikely to be threatened (there is another resistance at 1.0785). Overall, only a break of 1.0705 (minor support is at 1.0725) would indicate that the rapidly building momentum has faded.”
Next 1-3 weeks: “We turned negative on the Euro yesterday (02 Jun, pair at 1.0650), but we are of the opinion that any weakness is expected to find solid support at 1.0580. We did not expect the quick bounce that took out our ‘strong resistance’ level at 1.0730 (1.0750 high) Although short-term bullish momentum is building fast, the Euro clearly needs to break above 1.0800 before a further advance is likely The chance of the Euro breaking 1.0800 is quite high and would rise further more as long as the euro doesn’t move below 1.0675 (‘strong support’ level) these days. Looking ahead, the next resistance above 1.0800 is at 1.0850.”
Source: Fx Street
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