Forex Strategists UOB Group, Lee Sue Ann and Quek Ser Leang, suggested that EUR/USD rallies could reach 1.0600 zone in coming weeks.
24 hour outlook: “Although we expected a higher euro yesterday, we felt it was unlikely to break the strong resistance at 1.0490.” However, the euro easily topped this zone and reached a high of 1.0555. The rapid build-up of momentum is likely to lead to further euro strength. Having said that, a clear break of 1.0600 seems unlikely (next resistance is at 1.0640). To the downside, a break of 1.0490 (minor support is at 1.0520) would indicate that the momentum build has subsided.”
Next 1-3 weeks: “We highlighted yesterday (May 17, pair at 1.0440) that bearish momentum was starting to abate, but only a break of 1.0490 would indicate that the euro is unlikely to break 1.340. We did not expect the strong takeoff that led to an outsized gain , as the euro closed 1.11% higher (close 1.0547), its biggest one-day gain in two months.Price actions appear to be part of a corrective bounce. Bounce could extend to 1.0600, possibly testing major resistance at 1.0645. The current upside pressure is intact as long as the euro does not move below the ‘strong support’ level, currently at 1.0440.”
Source: Fx Street
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