In light of the recent price action, EUR/USD could now extend the move to 1.1750 and even beyond 1.1800, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Last Friday, we highlighted EUR ‘could continue to move higher even though the prospect for a break of 1.1635 is still not high’. We added, ‘that said, a clear break of this critical resistance could potentially lead to a rapid rise towards 1.1685’. EUR cracked 1.1635 during NY hours and closed on a strong note at 1.1654 (+0.52%). At the time of writing, EUR just moved above 1.1685. Strong and robust momentum suggests further EUR strength is likely but in view of the overbought conditions, EUR may not be able to maintain a toehold above 1.1750. Support is at 1.1630 followed by 1.1600.”
Next 1-3 weeks: “There is not much to add to our update from last Friday (24 Jul, spot at 1.1595). As highlighted, momentum remains strong and a break of the major long-term resistance could lead to a rapid advance to 1.1685, even as high as 1.1750. EUR just cracked 1.1685 a while ago and the price action clearly indicates that EUR is still strong. From here, the next level to focus on is at 1.1750 followed by 1.1830. Overall, the positive phase in EUR that started about 1-1/2 weeks ago is not showing any early sign of coming to an end. Only a break of 1.1540 (‘strong support’ level was at 1.1500 last Friday) would indicate that the current rally in EUR has run its course.”
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