EUR/USD’s positive outlook stays unchanged and could now attempt a move to 1.1440 and 1.1495 in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is scope for EUR to edge nearer to the major 1.1390 resistance, it is left to be seen if EUR can move and stay above this key level’. EUR traded below 1.1390 before popping to a high of 1.1422 after FOMC’s announcement. Upward momentum has ticked up slightly but it is likely not enough to push EUR upwards in a sustained manner. From here, EUR could edge higher towards 1.1430 but a sustained advance above this level is unlikely. On the downside, a breach of 1.1320 (minor support at 1.1345) would indicate the current mild upward pressure has eased.”
Next 1-3 weeks: “We first highlighted the 1.1390 level last Friday (05 Jun, spot at 1.1335)) wherein we indicated that if EUR can move clearly above this level, it would greatly increase the odds for a move to the March’s high near 1.1495. It took a few days but while EUR cracked 1.1390 yesterday (10 Jun), the price action around the break of this major resistance lacks ‘spark’ and upward momentum has not improved by all that much. That said, the current positive phase that started more than 3 weeks ago is deemed as intact until there is a breach of 1.1270 (‘strong support’ level was previously at 1.1220). On the upside, before 1.1495, there is another resistance at 1.1440.”
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