#EURUSD @ 1.06789 : Rebound faces strong resistance at 1.0735 – UOB
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UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang se EUR/USD picking up further upside traction in the next few weeks.
24-hour view: “EUR dropped to a low of 1.0482 last Friday before lifting to off to close sharply higher by 1.18% (1.0644). While overbought, the strong rise is not showing any signs of weakening just yet. There is room for the advance in EUR to edge above 1.0685 first before easing. The next resistance at 1.0715 is not expected to come into view. Support is at 1.0615, followed by 1.0580.”
Next 1-3 weeks: “Last Friday (06 Jan, spot at 1.0520), we indicated that EUR could weaken to the next support at 1.0450, possibly 1.0410. The sudden lift-off in NY trade sent EUR soaring to a high of 1.0647. The break of our ‘strong resistance’ at 1.0630 indicates that our view of further EUR weakness is incorrect. Despite the strong rise, upward momentum has not improved much. That said, EUR is likely to trade with an upward bias from here even though last month’s high of 1.0735 is a solid resistance and at this stage, the odds for a sustained rise above this level are not high. The upward bias is intact as long as EUR stays above 1.0535.”
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