United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD broke out of its recent tight range, closing slightly higher near 1.1675 as tentative upside momentum emerges.
They maintain a constructive short-term and medium-term view, with room for gains toward 1.1725 and longer-term technical targets at 1.1800 and 1.1850, provided the Euro (EUR) holds above clearly defined support levels
Tentative momentum supports higher levels “24-HOUR VIEW: Two days ago, EUR traded between 1.1655 and 1.1687 and closed modestly lower by 0.15% at 1.1662. Yesterday, we indicated that “the price action provides no fresh clues, and further range-trading appears likely, expected to be between 1.1650 and 1.1685.” Our view of range-trading was wrong. EUR dipped to 1.1650, rose to 1.1679 before settling at 1.1674 (+0.10%).
Upward momentum is starting to build, albeit tentatively. Today, there is a chance for EUR to test 1.1695. The next resistance at 1.1710 is unlikely to come under threat.