Euro: Upside bias needs confirmation above 1.1615 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report that EUR/USD briefly broke above major resistance at 1.1610 to 1.1614 before fading, leaving the Euro in a near-term consolidation between 1.1560 and 1.1600.
UOB's Quek Ser Leang and Lee Sue Ann reported that the EUR/USD briefly surpassed the major resistance at 1.1610 to 1.1614, but then declined, leaving the Euro in a near-term range between 1.1560 and 1.1600. The 1-3 week forecast remains optimistic, yet the currency pair must surpass 1.1615 to initiate a move to 1.1655, with solid support at 1.1525.
The 24-hour view indicated EUR surged sharply to 1.1585 on Friday last. However, they cautioned that the rapid rise might be premature, as long as the minor support at 1.1555 is not breached, EUR could climb to 1.1590. They noted that sustained growth above this level is improbable, and the major resistance at 1.1610 is not anticipated to be under threat.
While EUR stayed above 1.1545 (the low was 1.1558), it broke above 1.1610, peaking at 1.1614. Yet, it failed to maintain its gains, closing at 1.1579, only a slight increase of 0.09%. EUR seems to have entered a consolidation phase. The current expectation is for EUR to trade between 1.1560 and 1.1600. Yesterday, UOB revised their EUR outlook from neutral to positive (17 Aug, spot at 1.1570), emphasizing that the price action suggests EUR is likely to exhibit an upside bias.
It is still uncertain if EUR possesses enough momentum to reach the major resistance at 1.1610. On the downside, a break below 1.1525 would suggest EUR may continue trading in a range.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
