Euro: Upside bias needs close above resistance against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD extended modest gains to close at 1.1551, with mild upward momentum still intact. Intraday, the pair may test 1.1565, though a move to 1.1600 is seen as unlikely without stronger momentum. On a 1–3 week horizon, a sustained rise requires a daily close above 1.1565 while holding above 1.1495 support.

Euro's grind higher faces key hurdles

"24-HOUR VIEW: Following Tuesday’s price action, we noted yesterday that “there has been a slight uptick in upward momentum, and EUR may edge higher.” However, we pointed out that “given the mild upward momentum, any advance is unlikely to reach the major resistance at 1.1565.” We were not wrong, as EUR edged to a high of 1.1559 before settling at 1.1551 (+0.19%). The mild upward pressure remains intact. Today, there is a chance for EUR to break above 1.1565, but it remains to be seen whether it can maintain a foothold above this level. Based on the prevailing momentum, the major resistance at 1.1600 is highly unlikely to come into view. On the downside, a breach of 1.1530 (minor support is at 1.1540) would mean that the current mild upward pressure has faded."

"1-3 WEEKS VIEW: On Monday (03 Aug, spot at 1.1530), we indicated that “there is a chance for EUR to test the significant resistance at 1.1565.” We added that “should EUR close above this level, it could rise toward 1.1600.” While EUR edged to a high of 1.1559 yesterday, there has been no significant increase in upward momentum. In other words, EUR still must close above 1.1565 before further sustained rises can be expected. The odds of EUR closing above 1.1565 will remain intact as long as it holds above the ‘strong support’ at 1.1495 (level was at 1.1470 yesterday)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)