Euro: Consolidation with upside trigger at 1.1565 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang highlights EUR/USD’s recent sharp rise and subsequent consolidation after a failed attempt to sustain gains above 1.1558. Intraday, the Euro is expected to trade between 1.1485 and 1.1540, while a close above 1.1565 could open the way toward 1.1600.
UOB's Quek Ser Leang notes that the Euro has recently experienced a sharp increase followed by consolidation after failing to maintain gains above 1.1558. In the short term, the Euro is anticipated to fluctuate between 1.1485 and 1.1540, with a potential upward movement towards 1.1600 if it closes above 1.1565. In the longer term, breaching the 1.1390/1.1410 range could lead to a target of 1.1210.
On a 24-hour basis, the Euro initially dropped to a minimum of 1.1453 before a significant rebound. Yesterday, when the Euro reached 1.1530, UOB had previously highlighted that a level of 1.1565 would act as substantial resistance. It was emphasized that for the momentum to persist, the Euro needed to remain above 1.1495, with minor support at 1.1510. However, this forecast was not realized, as the Euro briefly surged to 1.1558, then declined to 1.1499, and ultimately closed at 1.1507, marking a 0.17% decrease.
Currently, market participants are viewing this period as a consolidation phase. Looking ahead over the next one to three weeks, UOB expects the Euro to trade within the range of 1.1485 and 1.1540. The bank maintains its previous assessment as long as the strong support level at 1.1455 is not surpassed.
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