EUR/USD: Outlook is revised to positive – UOB Group
|Euro (EUR) is likely to rise further; overbought conditions suggest 1.1495 is out of reach for now. In the longer run, EUR outlook is revised to positive; the immediate levels to watch are 1.1495 and 1.1530, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Overbought conditions suggest 1.1495 is out of reach for now
24-HOUR VIEW: "Our view for EUR to 'trade in a range of 1.1320/1.1390' yesterday was incorrect. Instead of range trading, EUR soared, closing 0.68% higher at 1.1441. Unsurprisingly, the rally has led to a sharp increase in upward momentum. While EUR is likely to rise further today, deeply overbought conditions suggest that 1.1490 is out of reach for now. Note that there is another resistance level at 1.1470. On the downside, any pullback is likely to hold above 1.1390, with minor support at 1.1415."
1-3 WEEKS VIEW: "Last Friday (30 May, spot at 1.1380), we highlighted that the recent 'increase in momentum is not enough for a sustained advance.' We also highlighted that 'To rise in a sustained manner, EUR must first break and hold above 1.1435, and meanwhile, EUR is likely to trade in a range of 1.1270/1.1435.' Yesterday, in a sharp move, EUR soared, closing above 1.1435 at 1.1441 (+0.68%). Given this development, we are revising our EUR outlook to positive. The immediate levels to watch are 1.1495 and 1.1530. We will maintain our positive view as long as the ‘strong support’ level, currently at 1.1345, is not breached."
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