EUR/USD: Above 1.0610 before further advance to 1.0650 is likely – UOB Group

Upward pressure appears to have eased; the Euro (EUR) may trade sideways between 1.0530 and 1.0590. In the longer run, EUR has to break and remain above 1.0610 before further advance to 1.0650 is likely, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

May trade sideways between 1.0530 and 1.0590

24-HOUR VIEW: “EUR soared to 1.0589 last Thursday. On Friday, we highlighted that ‘strong momentum points to further EUR strength.’ However, we highlighted that, ‘it remains to be seen if it can break clearly above the major resistance at 1.0610.’ Although EUR rose more than expected to 1.0629, it pulled back quickly from the high, closing lower by 0.17% at 1.0568. Upward pressure appears to have eased, and today, EUR may trade sideways, most likely between 1.0530 and 1.0590.”

1-3 WEEKS VIEW: “After EUR soared to 1.0589 last Thursday, we indicated on Friday (06 Dec, spot at 1.0585) that it ‘has to break and remain above 1.0610 before further advance to 1.0650 is likely.’ Although EUR broke above 1.0610 during NY trading session, it was unable to hold on to its gains, pulling back to close at 1.0568, lower by 0.17% for the day. There is still a chance for EUR to break and remain above 1.0610, as long as 1.0500 (no change in ‘strong support’ level from last Friday) is not breached. Looking ahead, the next level to watch above 1.0610 is 1.0650.”