EUR/USD: Resistance at 1.0480 is unlikely to come under threat for now – UOB Group
|Potential for Euro (EUR) to rise above 1.0440; the significant resistance at 1.0480 is unlikely to come under threat for now. Current price action is part of a recovery phase that could extend to 1.0480, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Current price action is part of a recovery phase
24-HOUR VIEW: “After trading in a range for a few days, EUR lifted off during NY session, surging to a high of 1.0434. While the impulsive momentum suggests further EUR strength, any advance could be relatively limited due to deeply overbought conditions. Overall, there is potential for EUR to rise above 1.0440, but the significant resistance at 1.0480 is unlikely to come under threat for now. Support levels are at 1.0385 and 1.0350.”
1-3 WEEKS VIEW: “We revised our view to neutral last Wednesday (15 Jan, spot at 1.0300), indicating that EUR ‘has likely entered a range trading phase, and it is likely to trade between 1.0220 and 1.0400 for the time being.’ EUR subsequently traded in a range, and yesterday (20 Jan, spot at 1.0275), we indicated that ‘further range is likely, but given the decreasing volatility, we expect price movements to be confined to a narrower range of 1.0220/1.0365 for now.’ We did not expect EUR to lift off and blew past 1.0365. EUR closed sharply higher by 1.39% (1.0414). The current price action is likely part of a recovery stage that could extend to 1.0480. Should EUR break above 1.0480, it could lead to a more sustained and sizeable advance. We will view EUR favourably from here, as long as 1.0305 (‘strong support’ level) is not breached.”
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.