United Abroad Financial institution’s (UOB) Quek Ser Leang and Lee Sue Ann hold a comfortable tone on EUR/USD, noting scope for the Euro to edge decrease however anticipating 1.1500 to carry for now, with 1.1520 as close by help. Over 1–3 weeks, they keep a adverse bias, on the lookout for a break of 1.1500 to open 1.1445, whereas a transfer above 1.1585 would negate the draw back situation.
Gentle tone whereas key ground holds
“24-HOUR VIEW: Whereas we held the view yesterday that EUR “is prone to edge decrease,” we identified that “primarily based on the prevailing momentum, any decline is unlikely to succeed in 1.1500.” We additionally famous that “there may be one other help stage at 1.1520.” Our view didn’t materialise, as throughout the early NY session, EUR fluctuated between 1.1530 and 1.1572 earlier than closing little modified at 1.1535 (-0.07%). The underlying tone nonetheless seems to be comfortable, and there’s a likelihood for EUR to edge decrease at the moment. Nonetheless, a breach of 1.1500 is unlikely (1.1520 remains to be anticipated to supply help as effectively). Resistance ranges are at 1.1550 and 1.1570.”
“1-3 WEEKS VIEW: Monitoring our adverse EUR view from final week (see annotations within the chart under), we highlighted yesterday (10 Jun, spot at 1.1540) that “whereas we keep our adverse view, 1.1500 is serving as a agency help, and EUR should break this stage earlier than a transfer to 1.1445 could be anticipated.” There is no such thing as a change in our view. On the upside, ought to EUR break above 1.1585 (‘sturdy resistance’ stage beforehand at 1.1600), it might point out that the draw back threat has pale.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
