EUR/USD: Upward momentum has slowed somewhat – UOB Group
Chance for Euro (EUR) to rise above 1.0530 vs US Dollar (USD); it is unclear whether it can maintain a foothold above this level. In the longer run, c, but only a breach of 1.0425 would indicate that EUR is not ready to rise above 1.0530, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
EUR has a chance to rise above 1.0530
24-HOUR VIEW: "EUR rose briefly to 1.0528 on Monday and then pulled back. Yesterday (Tuesday), we pointed out, “the price movements did not result in any increase in either downward or upward momentum.” We expected EUR to “trade in a sideways range of 1.0440/1.0495.” However, after dipping to a low of 1.0455, EUR soared and closed near a 2-1/2-month high (1.0513, +0.45%). Despite the relatively strong advance, upward momentum has not increased much. While there is a chance for EUR to rise above the major resistance at 1.0530 today, it is unclear whether it can maintain a foothold above this level. The next major at 1.0560 is unlikely to come into view. To sustain the increasing momentum, EUR must not break below 1.0480, with minor support level at 1.0495.
1-3 WEEKS VIEW: "Yesterday (25 Feb, spot at 1.0460), we noted that 'upward momentum has slowed somewhat.' We highlighted that 'only a breach of 1.0425 (‘strong support’ level) would indicate that EUR is not ready to rise above 1.0530.' While EUR subsequently rose and closed higher by 0.45% at 1.0513, there is no change in our view for now. Looking ahead, EUR has to break and remain above 1.0530 before a move to 1.0560 can be expected."
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