According to FX Strategists at UOB Group, EUR/USD is seen facing a strong resistance in the mid-1.1400s.
Key Quotes
24-hour view: “EUR traded sideways between 1.1349 and 1.1393 last Friday, relatively close to our expected range of 1.1340/1.1390. While the quiet price action offers no fresh clues, the current prolonged consolidation could be close to completion but only a clear break out of the 1.1340/1.1400 range would indicate the start of a more sustained directional move. In the meanwhile, EUR could continue to trade between the two strong levels of 1.1340 and 1.1400″.
Next 1-3 weeks: “There is not much to add as EUR consolidated and closed unchanged in NY last Friday (1.1368, 0.00%). Upward momentum has waned further and time is running out for view wherein the rally from 24 Jun (spot at 1.1375) has “scope to extend further” but any up-move is “expected to face solid resistance at 1.1450″. In order to rejuvenate the current flagging momentum, EUR has to move and stay above 1.1400 soon or a break of the 1.1290 ‘key support’ (no change in level) would indicate that EUR has lapsed into a ‘sideway-trading phase’.
Share
