Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest the next target of note for EUR/USD emerges at the 1.0480 level in the near term.
Key Quotes
24-hour view: “We highlighted yesterday that ‘the rebound in EUR has scope to extend but the major resistance at 1.0375 is unlikely to come into view’. The anticipated advance exceeded our expectations as EUR soared to a high of 1.0404. Strong upward momentum suggests further EUR strength even though last week’s high of 1.0480 is likely out of reach today (there is another resistance level at 1.0440). Support is at 1.0360, a breach of 1.0335 would indicate that the current upward pressure has eased.”
Next 1-3 weeks: “Yesterday (23 Nov, spot at 1.0305), we held the view that EUR is likely to trade within a range of 1.0180/1.0375. We did not expect the rapid manner in which EUR soared above 1.0375 (high has been 1.0404). The rapid build-up in momentum is likely to lead to further EUR gains. The level to monitor is last week’s high of 1.0480. The upside risk is intact as long as EUR does not move below the ‘strong support’ level, currently at 1.0300. On a shorter-term note, 1.0335 is already a strong support level. Looking ahead, the next resistance above 1.0480 is at 1.0560.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.