According to Quek Ser Leang, market strategist at UOB Groupand Peter Chia, senior currency strategist at the same group, Further upside could lift EUR/USD to the 1.0770 area in the short term.
24 hour perspective: Last Friday we highlighted that there was room for the EUR to continue rising, but a sustained break of the main resistance at 1.0680 was unlikely. However, the Euro not only broke clearly above 1.0680, but also broke another major resistance at 1.0730 and reached a high of 1.0746. Despite the overbought, bullish momentum seems to indicate that the Euro will continue to advance to 1.0770. The main resistance at 1.0800 does not look like it will appear today. Support is at 1.0705, followed by 1.0680.
Next 1-3 weeks: Last Friday (Nov 3, pair at 1.0620), we highlighted that although the EUR still seemed to be trading in a range, if it broke and held above 1.0680, it could lead to a rapid rally to the next major resistance in 1.0730. We added that the possibility of the Euro breaking clearly above 1.0680 was not high for now, but would increase in the coming days if it stayed above 1.0550. Although our opinion was not wrong, we did not foresee the way in which the Euro surpassed 1.0680, as it shot up 1.03% (close of 1.0729 in New York). The 1.03% rise is the largest in one day since mid-July. Impulsive recovery likely to extend to 1.0770 and 1.0800. On the downside, the strong support level has risen to 1.0640 from 1.0550.
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.
