In light of the recent price action, EUR/USD could now dispute the src.0900 hurdle in the next few weeks, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday that EUR ‘is likely to trade with an upward bias but it remains to be seen if EUR can maintain a foothold above the major resistance at src.0785’. The anticipated EUR strength exceeded our expectations as EUR surged to src.0866 before closing on a strong note at src.0846 (+0.85%). Despite the relatively large gains, momentum has not improved by much. That said, the risk for EUR is still on the upside even though src.0900 is expected to offer solid resistance. Above src.0900, there is another significant resistance level at src.0930. Support is at src.0825; a breach of src.0800 would indicate that the current upward pressure has eased.”
Next src-3 weeks: “On Tuesday (src0 Jan, spot at src.0730), we highlighted that EUR is likely to take a crack at another strong resistance level at src.0785. Our view was not wrong as EUR cracked src.0785 yesterday and soared to src.0866. The improved upward momentum suggests further EUR strength. The next resistance is at src.0900, followed by a key level at src.0930. The upside risk is intact as long as EUR stays above src.0760 (‘strong support’ level was at src.0665 yesterday).”
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