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United Overseas Bank’s (UOB) Quek Ser Leang highlights EUR/USD’s recent sharp rise and subsequent consolidation after a failed attempt to sustain gains above 1.1558. Intraday, the Euro is expected to trade between 1.1485 and 1.1540, while a close above 1.1565 could open the way toward 1.1600. Longer term, a break of 1.1390/1.1410 targets 1.1210.
Range trade while eyeing 1.1565
“24-HOUR VIEW: Last Friday, EUR fell to a low of 1.1453 and then rebounded sharply. When EUR was at 1.1530 yesterday, we highlighted that it “could continue to rebound but note that 1.1565 is expected to provide significant resistance.” We added, “to keep the momentum going, EUR must hold above 1.1495, with minor support at 1.1510.” Our view did not materialise, as EUR rose briefly to 1.1558, fell to 1.1499 and then closed at 1.1507 (-0.17%). The current price movements appear to be part of a consolidation phase. Today, we expect EUR to trade between 1.1485 and 1.1540.”
“1-3 WEEKS VIEW: EUR rose sharply and closed higher by 1.41% last week. Yesterday (03 Aug, spot at 1.1530), we indicated the following: “The rapid rise appears to be running ahead of itself, but there is a chance for EUR to test the significant resistance at 1.1565. Should EUR close above this level, it could rise toward 1.1600.” We will continue to hold the same view as long as 1.1455 (no change in ‘strong support’ level) is not breached.”
