EUR/USD: Expected to consolidate in a range of 1.1660/1.1730 – UOB Group
|Euro (EUR) is expected to consolidate in a range of 1.1660/1.1730. In the longer run, further EUR strength still seems likely; the next level to monitor is 1.1780, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Further EUR strength still seems likely
24-HOUR VIEW: "While we indicated yesterday that EUR 'may break above 1.1700', we stated that 'it remains to be seen if it can maintain a foothold above this level.' We added, 'the next resistance at 1.1730 is unlikely to come into view.' Our directional call was correct, but EUR rose more than expected to 1.1744. EUR then pulled back from the high to close up by 0.34% at 1.1699. The pullback in overbought conditions indicates that EUR is unlikely to rise further. Today, we expect EUR to consolidate in a range of 1.1660/1.1730."
1-3 WEEKS VIEW: "After expecting EUR to trade in a range since late last week, we revised our outlook to positive yesterday, 26 Jun (spot at 1.1670). We indicated that EUR 'could advance, and the level to monitor is 1.1730.' We did not expect EUR to reach 1.1730 so soon, as it rose to a high of 1.1744 in the London session. Further EUR strength still appears likely, but overbought short-term conditions could slow the pace of any further advance. The next level to monitor is 1.1780. Overall, only a breach of 1.1620 (‘strong support’ level was at 1.1595 yesterday) would suggest that EUR is not strengthening further."
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