EUR/USD: Risk of breaking above 1.0850 increases – UOB Group

The
Euro
(EUR)
is
expected
to
continue
to
trade
in
a
range,
probably
between
1.0800
and
1.0840.
Risk
of
EUR
breaking
above
1.0850
has
increased,
albeit
moderately,
UOB
Group
FX
strategists
Quek
Ser
Leang
and
Peter
Chia
note.

Next
level
to
watch
above
1.0850
is
1.0915

24-HOUR
VIEW:
“Yesterday,
we
pointed
out
that
‘momentum

indicators
are
turning
flat,’
and
we
expected
EUR
to
trade
in
a
1.0795/1.0845
range.
EUR
then
traded
in
a
relatively
narrow
range
between
1.0804
and
1.0833,
closing
at
1.0812
(-0.09%).
The
quiet
price
action
provides
no
fresh
clues,
and
we
continue
to
expect
EUR
to
trade
in
a
range,
probably
between
1.0800
and
1.0840.”

1-3
WEEKS
VIEW:
“Last
Thursday
(04
Jul,
spot
at
1.0785),
we
indicated
that
‘while
the
increase
in
momentum
suggests
further
EUR
strength,
it
is
too
early
to
determine
if
it
can
reach
the
major
resistance
at
1.0850.’
After
EUR
rose,
we
indicated
on
Monday
(08
Jul,
spot
at
1.0825)
that
‘the
risk
of
EUR
breaking
above
1.0850
has
increased,
albeit
moderately.’
EUR
traded
in
a
quiet
manner
yesterday,
and
there
is
no
change
in
our
view.
Overall,
only
a
breach
of
1.0770
(no
change
in
‘strong
support’
level
from
yesterday)
would
indicate
that
the
current
upward
pressure
has
faded.
Looking
ahead,
the
next
level
to
watch
above
1.0850
is
1.0915.”