Price action suggests further Euro (EUR) strength, with 1.1400 now in focus, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Price action suggests further EUR strength
24-HOUR VIEW: “EUR rose to 1.1362 on Wednesday and then pulled back. Yesterday, Thursday, we pointed out that ‘the pullback in overbought conditions suggests EUR is unlikely to strengthen much further.’ We were of the view that EUR ‘is more likely to consolidate between 1.1290 and 1.1365.’ However, rather than consolidating, EUR dropped to 1.1253 in the NY session. EUR closed at 1.1280, down 0.43%. Despite the decline, there has been no clear increase in downward momentum. The current price movements are likely part of a range trading phase, expected to be between 1.1255 and 1.1325.”
1-3 WEEKS VIEW: “Yesterday (22 May, spot at 1.1325), we highlighted that ‘the price action suggests further EUR strength, with 1.1400 now in focus.’ We added, ‘to keep the momentum going, EUR must hold above 1.1235 (‘strong support’ level).’ While the subsequent pullback in the NY session went a bit deeper than expected, we continue to hold the same view for now.”