EUR/USD seen tough resistance in the mid-1.1400s – UOB
FX Strategists at UOB Group expect EUR/USD to face significant resistance in the 1.1450 area in the near term.
24-hour view: “We woefully underestimated EUR strength as instead of “edging above 1.1320”, it blew past this level and rocketed to 1.1377. While overbought, the rally has scope to extend above 1.1400. For today, the next major resistance at 1.1450 is not expected to come into the picture. On the downside, 1.1320 is deemed as strong enough to hold any intraday pullback (minor support is at 1.1345)”.
Next 1-3 weeks: “While our expectation from last Friday (21 Jun, spot at 1.1290) that “EUR is likely to move into a ‘positive phase’ soon” was not wrong, the timeliness of the call could be ‘earlier’. EUR not only eclipsed several strong resistance levels with ease but also hit a 3-month high of 1.1377 before ending the week higher by a whopping 1.41% (NY close of 1.1366). The strong and impulsive rally suggests there is scope for the current ‘positive phase’ to extend further even though March’s peak near 1.1450 is expected to offer solid resistance. The ‘positive phase’ is deemed as intact until the 1.1275 ‘key support’ is taken out (level was a ‘strong support’ at 1.1220 last Friday)”.
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