Potential for Euro (EUR) to rise above 1.0440; The important resistance at 1.0480 is unlikely to be threatened for now. The current price action is part of a recovery phase that could extend to 1.0480, note UOB Group currency analysts Quek Ser Leang and Lee Sue Ann.
The current price action is part of a recovery phase.
24 HOUR VIEW: “After trading in a range for a few days, the EUR soared during the New York session, reaching a high of 1.0434. While the impulsive momentum suggests further euro strength, any advance could be relatively limited due to deeply overbought conditions. Overall, there is a chance for the euro to rise above 1.0440, but the important resistance at 1.0480 is unlikely to be threatened for now. Support levels are at 1.0385 and 1.0350.”
1-3 WEEK VIEW: “We revised our view to neutral last Wednesday (Jan 15, spot at 1.0300), indicating that the EUR has likely entered a range-bound trading phase, and is likely to break out. trade between 1.0220 and 1.0400 for the moment. .’ The EUR subsequently traded in a range, and yesterday (January 20, spot at 1.0275), we indicated that “a further range is likely, but given the decreasing volatility, we expect price movements to be limited to a range.” tighter than 1.0220/1.0365 for now.” .’ We did not expect the EUR to take off and break above 1.0365. The euro closed with a strong rise of 1.39% (1.0414). The current price action is likely part of a recovery stage that could extend to 1.0480. If the euro breaks above 1.0480, it could lead to a more sustained and considerable advance. We will view the euro favorably from here as long as it does not break above the 1.0305 level (‘strong support’ level).
Fountain:
