Euro: Rebound against US Dollar faces key cloud barrier – UOB
UOB Group’s Quek Ser Leang highlights that EUR/USD has staged a sharp rebound after drifting sideways, following a decline from January’s high to mid-June’s low.
UOB Group's Quek Ser Leang reports that EUR/USD has experienced a significant rebound against the US Dollar after a period of sideways movement, following a decline from its January peak to a low in mid-June. The currency pair has the potential to continue its upward trajectory, but the crucial resistance level lies at 1.1560/1.1565, which coincides with the daily Ichimoku cloud top and a weekly trendline.
Analysts emphasize that the pair must break and hold above this zone before it can potentially reach a minor June peak of 1.1622. On the downside, support is found at 1.1470 and 1.1445, with the latter acting as a potential hurdle if EUR/USD dips below this level, as it may then face continued resistance from the upper boundary of the daily Ichimoku cloud.
Recent market movements and geopolitical uncertainties, such as Middle East tensions, have impacted the US Dollar's performance, contributing to EUR/USD's current range above 1.1500 in European trading. Traders are eagerly anticipating the July US Nonfarm Payrolls (NFP) report for a clearer market direction.
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