EUR/USD expects further gains above 1.0800 – UOB

Forex Strategists UOB Group, Lee Sue Ann and Quek Ser Leang, suggested that the EUR/USD could accelerate its gains on a close above the 1.0800 mark.

24 hour outlook: “Our view that the euro would consolidate and trade between 1.0690 and 1.0765 yesterday was incorrect as it rose to a high of 1.0786 before closing firmly at 1.0777 (+0.47%). Although upside momentum remains slim, there is room for the euro to test the main resistance at 1.0800. For today, the next resistance at 1.0840 is not expected to be threatened. Support is at 1.0745, but only a break of 1.0720 would indicate that the current upside pressure has subsided.”

Next 1-3 weeks: “Yesterday we highlighted that the risk remained to the upside, but given the lackluster momentum to the upside, it remains to be seen if the euro could extend its rally to 1.0800.” Subsequently, the euro rose to 1.0786 and the possibility of the euro breaking 1.0800 has increased, but only slightly. Having said that, euro needs to close above 1.0800 before further sustained advance is likely. Upside risk is intact as long as the euro does not move below 1.0695 (‘strong support’ was 1.0655 yesterday). Ahead, the next resistance above 1.0800 is at 1.0840.”

Source: Fx Street

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