The Euro (EUR) is anticipated to trade within a narrow range of 1.0875 to 1.0915, with upward momentum showing signs of slowing. UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note that while the next resistance level above 1.0915 is at 1.0940, it remains uncertain if the EUR can rise further.
24-Hour View:
Yesterday, expectations were for the EUR to trade between 1.0855 and 1.0905. Contrary to this, the EUR rose to 1.0922 before pulling back to close at 1.0894, down 0.11%. Despite the rise, no clear increase in momentum was observed. Today, the EUR is expected to continue trading within the range of 1.0875 to 1.0915.
1-3 Weeks View:
Last Friday (July 12, spot at 1.0865), it was highlighted that the EUR was expected to continue its upward trajectory. However, given severely overbought conditions, it was suggested that it might take a few days before reaching 1.0915. Yesterday, the EUR broke above 1.0915, peaking at 1.0922 before pulling back and closing at 1.0894. Although there is still potential for the EUR to rise further, the slowing momentum casts doubt on reaching 1.0940. A breach of 1.0850, previously marked as ‘strong support’ at 1.0825, would indicate that the EUR’s strength from earlier this month has dissipated.
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