EUR/USD: Likely to lead to a higher trading range of 1.1685/1.176 – UOB Group
|Slight increase in upward momentum is likely to lead to a higher trading range of 1.1685/1.1765. In the longer rum, 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: "After EUR rose to 1.1744 last Thursday and pulled back, we highlighted on Friday that 'the pullback in overbought conditions indicates that EUR is unlikely to rise further.' We expected EUR to 'consolidate in a range of 1.1660/1.1730.' The subsequent price movements did not turn out as we expected, as EUR rose briefly to 1.1754 before easing off to close at 1.1719 (+0.17%). There has been a slight increase in upward momentum, and this is likely to lead to USD trading in a higher range of 1.1685/1.1765. We do not expect EUR to break clearly above 1.1765 today."
1-3 WEEKS VIEW: "The following excerpts from our update last Friday (27 Jun, spot at 1.1700) still stand: '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) would suggest that EUR is not strengthening further'."
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