EUR/USD: To continue strengthen towards 1.1275 – UOB Group

FXStreet Insights Team FXStreet

The Euro (EUR) is likely to strengthen against the US Dollar (USD) further towards 1.1225, but the significant resistance level at 1.1275 is unlikely to come into view today, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

EUR targets the 2023 high of 1.1275

24-HOUR VIEW: “Last Friday, we expected EUR to trade in a range between 1.1085 and 1.1155. EUR traded sideways until NY trade, when it lifted off and touched 1.1200. EUR closed on a strong note at 1.1190 (+0.70%). While conditions are overbought, strong upward momentum suggests further EUR strength, likely towards 1.1225. The significant resistance level of 1.1275 is unlikely to come into view today. Support levels are at 1.1165 and 1.1145.”

1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (22 Aug, spot at 1.1155), we indicated that ‘solid momentum after the recent price action indicates further EUR strength is likely.’ However, we noted that ‘it remains to be seen whether the 2023 high of 1.1275 is within reach in the next couple of weeks.’ Last Friday, EUR soared to a high of 1.1200. The boost in momentum has increased the likelihood of EUR reaching 1.1275. Overall, we will continue to hold a positive EUR view provided that the ‘strong support’ level at 1.1105 (level previously at 1.1045) 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 hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.