EUR/USD: Chance to rise above 1.1765 – UOB Group
|There is potential for Euro (EUR) to rise above 1.1765 against US Dollar (USD); overbought conditions suggest it might not be able to hold above this level. In the longer run, price action indicates further EUR strength, likely toward 1.1795, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Price action indicates further EUR strength
24-HOUR VIEW: "Our view of consolidation yesterday was incorrect, as EUR rose sharply for the second straight day, reaching a high of 1.1760. While there is potential for EUR to rise above 1.1765 today, overbought conditions suggest it might not be able to hold above this level. The next resistance at 1.1795 is also unlikely to come under threat. To sustain the overbought momentum, EUR must hold above 1.1700, with minor support at 1.1720."
1-3 WEEKS VIEW: "We revised our view to neutral last Thursday (17 Jul, spot at 1.1630). We expected EUR to 'consolidate in a range of 1.1550/1.1720 for the time being.' After EUR rose to a high of 1.1716, we highlighted the following yesterday (22 Jul, spot at 1.1690): 'Although there has been an increase in upward momentum, it is not strong enough to suggest a sustained rise just yet. EUR must close above 1.1720 before a move to 1.1765 can be expected. The chance of EUR closing above 1.1720 will remain intact as long as EUR holds above the ‘strong support’ level, now at 1.1620, in the next few days.' We underestimated the buildup in momentum, as EUR subsequently soared, almost reaching 1.1765 (high of 1.1760). The price action indicates further EUR strength, likely toward 1.1795. On the downside, the ‘strong support’ level is now at 1.1655 instead of 1.1620."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.