EUR/USD: Still scope for a move to 1.0630 – UOB

Pablo Piovano FXStreet

EUR/USD is still expected to attempt an advance to the 1.0630 region in the next few weeks, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: We noted yesterday “there does not appear to be any clear directional bias,” and we expected EUR to trade in a range between 1.0500 and 1.0600. Our view was not wrong, even though EUR traded in a narrower range than expected (1.0518/1.0574). Upward momentum is showing early signs of building. Today, EUR is likely to trade with an upward bias. In view of the mild upward pressure, any advance is unlikely to reach the major resistance at 1.0630 (there is another resistance at 1.0600). In order to maintain the momentum buildup, EUR must stay above 1.0530 (minor support is at 1.0550).

Next 1-3 weeks: Our view from last Friday (06 Oct, spot at 1.0545) still stands. As highlighted, the current price action in EUR is likely part of a rebound that could extend to 1.0630 but is unlikely to break clearly above this level. The mild upward pressure is intact as long as EUR stays above 1.0500 (‘strong support’ level previously at 1.0460).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.