Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group famous additional upside momentum in EUR/USD nonetheless stays on the desk within the subsequent few weeks.
Key Quotes
24-hour view: “Our expectations for EUR to interrupt the key resistance at 1.0550 didn’t materialize because it plummeted to 1.0426 in NY commerce earlier than rebounding strongly to shut at 1.0538 (+0.15%). Whereas upward momentum has eased considerably, we see room for EUR to edge above 1.0550. Nonetheless, EUR is unlikely to problem the following resistance at 1.0620. Help is at 1.0505, adopted by 1.0480.”
Subsequent 1-3 weeks: “We proceed to carry the identical view as final Friday (02 Dec, spot at 1.0525). As highlighted, the chance for EUR stays on the upside and the following degree to concentrate on is at 1.0620, adopted by 1.0690. That mentioned, after the sharp and transient drop to 1.0426 in NY commerce on Friday (the decline got here near breaking our ‘sturdy help’ degree at 1.0420), upward momentum has eased considerably. Whereas we proceed to see upside danger, the 1.0620 degree might not become visible so quickly. On the draw back, there is no such thing as a change within the ‘sturdy help’ degree at 1.0420.”
