EUR/USD still eyes a test of 1.1630 – UOB
|The pair’s outlook stays neutral in the near term while it could re-visit the 1.1630 level in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “EUR extended its recent up-move and hit a high of 1.1623 yesterday. While the rapid and sharp advance over the past several days has moved into overbought territory, there is no sign of weakness just yet and it is too early to expect a sustained pullback. From here, barring a break below 1.1550, there is chance for EUR to test the major 1.1630 resistance first before a pull-back can be expected. At this stage, a move beyond the next resistance at 1.1670 seems unlikely”.
Next 1-3 weeks: “We shifted to a neutral stance on Tuesday (21 Aug, spot at 1.1485) and held the view the ‘robust’ recovery in EUR could lead to a test of the major 1.1630 resistance. We added, it could “take several days before this level would come into the picture”. However, the pace of the anticipated rebound was faster than expected as EUR hit a high of 1.1623 yesterday (22 Aug) before closing higher for the sixth consecutive days. The rapid recovery is running too fast, too soon but we still see chance for a ‘full-test’ of 1.1630 before a significant pull-back can be expected. The next resistance above 1.1630 is at 1.1670 and at this stage, we apportion a low probability for a clear break above this level. On the downside, the ‘key support’ is currently at 1.1470 (was previously at 1.1420) and only a break of this level would indicate that the current upward pressure has eased”.
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.