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EUR/USD: Poised to break above 1.0850 – UOB Group

The risk seems to be tilted to the upside; it remains to be seen whether it can clearly break above 1.0850. The risk of the Euro (EUR) breaking above 1.0850 has increased, albeit moderately, FX analysts at UOB GroupQuek Ser Leang and Peter Chia.

A break above 1.0850 is very likely

24 HOURS VIEW:”EUR traded between 1.0809 and 1.0830 yesterday, narrower than our expected range of 1.0800/1.0840. Despite the relatively quiet price action, bullish momentum appears to be building, albeit tentatively. Risk for today appears to be tilted to the upside, but It remains to be seen whether the EUR can clearly break above the major resistance at 1.0850. However, if there is a clear break of 1.0850, the EUR could continue to rise. That said, the next major resistance at 1.0915 is unlikely to come into play for now. On the downside, support levels are at 1.0815 and 1.0800.”

OUTLOOK 1-3 WEEKS:”Last Thursday (04 July, pair at 1.0785), we indicated that ‘although the increase in momentum suggests further EUR strength, it is too early to determine whether it can reach the major resistance at 1.0850.’ After the EUR rose, we indicated on Monday (08 July, pair at 1.0825) that ‘the risk of the EUR breaking above 1.0850 has increased, albeit moderately.’ We continue to hold the same view. Looking ahead, If EUR breaks clearly above 1.0850, the next level to focus on is 1.0915. Overall, only a break of 1.0780 (previously ‘strong support’ level at 1.0770) would indicate that the current bullish pressure has eased.”

Source: Fx Street

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