Bears may try to break below 1.1000 – UOB Group

The Euro (EUR) is likely to trade in a sideways range of 1.0985/1.1045. Upward momentum has been rejuvenated. The next level to watch is 1.1070, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

The closest support is at 1.1000

24-HOUR VIEW: “We highlighted yesterday that EUR ‘could move higher and break above last week’s high near 1.1010.’ We also highlighted that ‘the next resistance at 1.1050 is likely out of reach.’ Our view was correct, as EUR rose to 1.1047, pulling back to close at 1.1012 (+0.18%). The pullback in overbought conditions suggests EUR is unlikely to rise further. Today, EUR is more likely to trade in a sideways range of 1.0985/1.1045.”

1-3 WEEKS VIEW: “After EUR soared two days ago, we indicated yesterday (14 Aug, spot at 1.0990) that ‘upward momentum has been rejuvenated.’ We added, ‘the outlook for EUR is still positive and the next level to watch is 1.1070.’ EUR subsequently rose to 1.1047, closing at its highest level this year (1.1012, +0.18%). There is no change in our view. Overall, only a breach of 1.0955 (‘strong support’ was at 1.0925 yesterday) would mean that the EUR strength that started early last week has come to an end. Looking ahead, the next resistance above 1.1070 is at 1.1100.”