The Euro (EUR) is poised for further gains, potentially accelerating toward the 1.1000 mark, according to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
Current Trend and Short-Term Outlook:
The Euro has surpassed the 1.0950 level and is approaching 1.1000. The recent surge came after a dip to 1.0781, followed by a significant rally that saw the Euro close at 1.0908, up 1.08% on Friday. Despite this strong rebound, analysts believe the current pace might be unsustainable in the short term. They anticipate that while the Euro could continue to rise, it may face resistance near the previous month’s high around 1.0950 and another key level at 1.0930. For the Euro to maintain its momentum, it needs to stay above 1.0860, with minor support at 1.0885.
Medium-Term Perspective:
The analysts have shifted their stance on the Euro’s medium-term trajectory. After maintaining a negative outlook since late July, they observed signs of slowing downward momentum and revised their view on August 1. Despite further declines to 1.0775, the recent rebound has surpassed the previously established strong resistance at 1.0850. This indicates a potential shift in momentum from bearish to bullish. While the short-term surge may appear overextended, the analysts see a credible chance for the Euro to advance further. A decisive break above 1.0950 could pave the way for a swift climb toward 1.1000. The analysts will maintain a positive outlook for the Euro, provided it remains above 1.0820.
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