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EUR/USD: There is a slight chance of breaking above 1.0850 – UOB Group

Rather than retreating, the Euro (EUR) is more likely to trade in a range between 1.0800 and 1.0845. The risk of the EUR breaking above 1.0850 has increased, albeit moderately, analysts at UOB Group.

EUR is ready to break above 1.0850

24 HOURS VIEW: “While we expected the EUR to rise last Friday, we indicated that ‘it remains to be seen whether it can reach the major resistance at 1.0850.’ The EUR subsequently rose to a high of 1.0842, closing at 1.0836 (+0.24%). The EUR fluctuated at the open this morning, and the bullish momentum has not increased much further. That said, rather than pulling back, it is more EUR is likely to trade in a range today, probably between 1.0800 and 1.0845.”

1-3 WEEK OUTLOOK:”Last Thursday (July 4, 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.’ On Friday, the EUR rose, reaching a high of 1.0842. Although there has been no significant increase in momentum, The risk of the EUR breaking above 1.0850 has increased, albeit moderately. If EUR breaks clearly above 1.0850, the next level to monitor is 1.0900. Conversely, if EUR breaks below 1.0770 (the ‘strong support’ level was at 1.0745 last Friday), it would mean that the current bullish pressure has faded away.”

Source: Fx Street

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