EUR/USD: Risk of EUR breaking above 1.0850 increases – UOB Group
|The Euro (EUR) is expected to trade in a 1.0795/1.0845 range. Risk of EUR breaking above 1.0850 has increased, albeit moderately, UOB Group analysts note.
EUR is set to break above 1.0850
24-HOUR VIEW: “After EUR edged higher last Friday, we noted yesterday that ‘upward momentum has not increased much further.’ We indicated that “instead of pulling back, EUR is more likely to trade in a range between 1.0800 and1.0845.” Our view was not wrong, as EUR traded between 1.0800 and 1.0845, closing at 1.0822 (-0.13%). Momentum indicators are turning flat, and we continue to expect EUR to trade in a range today, expected to be between 1.0795 and 1.0845.”
1-3 WEEKS VIEW: “Last Thursday (04 Jul, spot at 1.0785), we indicated that ‘while the increase in momentum suggests further EUR strength, it is too early to determine if it can reach the major resistance at 1.0850.’ After EUR rose, we indicated yesterday (08 Jul, spot at 1.0825) that ‘the risk of EUR breaking above 1.0850 has increased, albeit moderately.’ We continue to hold the same view. Overall, only a breach of 1.0770 (no change in ‘strong support’ level from yesterday) would indicate that the current upward pressure has faded. Looking ahead, the next level to watch above 1.0850 is 1.0915.”
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.