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EUR/USD: Risk of breaking above 1.0850 increases – UOB Group

The Euro (EUR) is expected to continue trading in a range, probably between 1.0800 and 1.0840. The risk of the EUR breaking above 1.0850 has increased, albeit moderately, FX strategists at the Eurozone point out. UOB GroupQuek Ser Leang and Peter Chia.

The next level to watch above 1.0850 is 1.0915

24 HOURS VIEW:”Yesterday, we noted that ‘momentum indicators are flattening,’ and we expected the EUR to trade in a range of 1.0795/1.0845. The EUR then traded in a relatively tight range between 1.0804 and 1.0833, closing at 1.0812 (-0.09%). The calm price action provides no new clues, and We continue to expect EUR to trade in a range, probably between 1.0800 and 1.0840.”

OUTLOOK 1-3 WEEKS:”Last Thursday (July 04, pair at 1.0785), we stated 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 stated on Monday (July 08, pair at 1.0825) that ‘The risk of EUR breaking above 1.0850 has increased, albeit moderately.’ The EUR traded quietly yesterday, and there is no change in our view. Overall, only a break of 1.0770 (no change in the ‘strong support’ level since yesterday) would indicate that the current bullish pressure has eased. Looking ahead, the next level to watch above 1.0850 is 1.0915.”

Source: Fx Street

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