Continuation of bullish momentum could lead to EUR/USD to the level of 1.0945 in the coming weeks, say Quek Ser Leang, market strategist, and Lee Sue Ann, economist at UOB Group.
24 hour perspective: After the EUR bounced from 1.0663 on Monday, we highlighted yesterday that the bounce was likely to continue but was unlikely to break the main resistance at 1.0750. However, in New York trading, the Euro surpassed 1.0750 and shot up to 1.0887. The Euro ended the day up 1.70%, its biggest one-day gain in a year. New advances are not ruled out; Given the severe overbought conditions, the main resistance at 1.0945 is unlikely to appear today (there is another resistance at 1.0915). Any pullback is likely to remain above 1.0810 (minor support is at 1.0845).
Next 1-3 weeks: Last Friday (November 10, pair at 1.0665), we highlighted that the outlook for the Euro is neutral, and we expected it to trade sideways in a range of 1.0580/1.0750. The way the Euro broke above 1.0750 yesterday and accelerated to 1.0887 clearly indicates that it has broken out of the sideways trading range. Although it appears that the 1.70% rise has been excessive, the Euro is likely to continue strengthening. The level to watch is 1.0945. Overall, only a break of ‘strong support’ (currently at 1.0770) would indicate that the Euro is not strengthening further. The ‘strong support’ level will rise in the coming days.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
