EUR/USD: Outlook is revised to positive – UOB Group

FXStreet Insights Team FXStreet

Euro (EUR) is likely to rise further; overbought conditions suggest 1.1495 is out of reach for now. In the longer run, EUR outlook is revised to positive; the immediate levels to watch are 1.1495 and 1.1530, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Overbought conditions suggest 1.1495 is out of reach for now

24-HOUR VIEW: "Our view for EUR to 'trade in a range of 1.1320/1.1390' yesterday was incorrect. Instead of range trading, EUR soared, closing 0.68% higher at 1.1441. Unsurprisingly, the rally has led to a sharp increase in upward momentum. While EUR is likely to rise further today, deeply overbought conditions suggest that 1.1490 is out of reach for now. Note that there is another resistance level at 1.1470. On the downside, any pullback is likely to hold above 1.1390, with minor support at 1.1415."

1-3 WEEKS VIEW: "Last Friday (30 May, spot at 1.1380), we highlighted that the recent 'increase in momentum is not enough for a sustained advance.' We also highlighted that 'To rise in a sustained manner, EUR must first break and hold above 1.1435, and meanwhile, EUR is likely to trade in a range of 1.1270/1.1435.' Yesterday, in a sharp move, EUR soared, closing above 1.1435 at 1.1441 (+0.68%). Given this development, we are revising our EUR outlook to positive. The immediate levels to watch are 1.1495 and 1.1530. We will maintain our positive view as long as the ‘strong support’ level, currently at 1.1345, is not breached."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.