The Euro (EUR) is likely to rise above 1.1200. There does not seem to be enough momentum for it to reach 1.1230 today. In the longer term, the firm short-term momentum suggests that the EUR could rise towards 1.1230, say UOB Group FX Strategists Quek Ser Leang and Peter Chia.
EUR may rise towards 1.1230
24-HOUR VIEW: “After the EUR fell sharply two days ago, we indicated that ‘the sharp decline seems to be a bit overdone, but barring a break of 1.1150, there is room for the EUR to test the 1.1080 level’. Our view was wrong as the EUR bounced strongly to 1.1180. Today, there is a chance for the EUR to rise above 1.1200, but there does not seem to be enough momentum for it to reach 1.1230. Support is at 1.1165, a break of 1.1145 would mean that the current bullish pressure has faded.”
1-3 WEEK VIEW: “EUR fell sharply two days ago. Yesterday (September 24, 1.1110), we indicated that EUR is ‘likely to edge lower, but any decline is expected to face strong support at 1.1050.’ We noted that ‘to maintain momentum building, EUR needs to remain below 1.1175.’ Our view was quickly invalidated as EUR reversed and bounced to 1.1180. Although the sharp moves of the past few days have clouded the outlook, firm short-term momentum suggests EUR could rally towards 1.1230. EUR needs to clearly break above this level before a move to 1.1275 can be expected. The bullish bias remains intact as long as it remains above 1.1110.”
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.
