A sustained advance in EUR/USD is likely on a break above the 1.0300 level, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “While we highlighted yesterday that ‘EUR is unlikely to weaken’, we expected it to ‘trade between 1.0130 and 1.0210’. However, EUR soared to 1.0253 before closing on a strong note at 1.0243 (+0.78%). Upward momentum is building and the chance for EUR to break the 1.0260 has increased. That said, the odds for a breach of the next major resistance at 1.0300 are not high for now. Support is at 1.0215 followed by 1.0185.”
Next 1-3 weeks: “We have expected EUR to consolidate for more than a week now. In our latest narrative from Wednesday (03 Aug, spot at 1.0165), we indicated that EUR is still in a consolidation phase and expected it to trade between 1.0100 and 1.0260. EUR rose to 1.0253 yesterday and shorter-term upward momentum is beginning to build. However, EUR has to break 1.0300 before a sustained advance is likely. The chance for EUR to break 1.0300 would remain intact as long as it does not move below the ‘strong support’ level (currently at 1.0140) within these 1 to 2 days.”
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