As the Euro (EUR) continues to show signs of potential upside momentum, UOB Group’s FX strategists Quek Ser Leang and Peter Chia suggest that any advance may struggle to break above the key resistance level of 1.0960. If the EUR breaches 1.0875, it could signal a loss of momentum towards the upside target of 1.1010.
Analysis of Short-Term and Long-Term Views
Short-Term View: The EUR edged higher to 1.0939 before closing at 1.0931, showing a slight increase in momentum. However, with resistance at 1.0960, any further advance may be limited. A breach of 1.0905 would indicate a weakening of upward pressure.
1-3 Weeks View: Following a surge to 1.1008 and a subsequent pullback, the EUR has been trading sideways. If the EUR falls below 1.0875, the likelihood of reaching 1.1010 diminishes, according to UOB Group’s analysis.
Conclusion and Implications for Investors
Overall, while there is potential for the Euro to gain momentum, the resistance at 1.0960 remains a significant barrier. Investors should monitor the key support levels at 1.0875 and 1.0905 to gauge the EUR’s strength. A breach of these levels could signal a shift in the currency’s trajectory and impact investment decisions.