The Euro (EUR) is anticipated to edge higher, with strong resistance expected at the 1.0960 level. UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note that the EUR must surpass 1.1010 to see further advances to 1.1070.
Near-Term Outlook: EUR Likely to Test Resistance
24-HOUR VIEW: “Yesterday, we noted that ‘the current price action is likely part of a consolidation phase,’ anticipating EUR to trade between 1.0895 and 1.0960. This view was accurate, although EUR traded within a narrower range than expected (1.0905/1.0936), closing at 1.0921 (-0.08%). Despite the subdued price action, upward momentum appears to be building, albeit tentatively. Today, we expect EUR to edge higher, though the 1.0960 level is expected to offer strong resistance. Support is at 1.0915, followed by 1.0900.”
1-3 WEEKS VIEW: “Our update from two days ago (06 Aug, spot at 1.0955) remains valid. As highlighted, ‘while the outlook for EUR is still positive, it must surpass 1.1010 before further advance to 1.1070 can be expected.’ On the downside, if EUR breaches the ‘strong support’ at 1.0875 (previously at 1.0855), it would indicate that EUR is not ready to move above 1.1010.”
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