EUR/USD could now retest 1.0660 – UOB
Further improvement could prompt EUR/USD to revisit the 1.0660 region in the near term, comment Economist Lee Sue Ann and Markets Strategist Quek Ser at UOB Group.
Key Quotes
24-hour view: We expected EUR to trade sideways between 1.0535 and 1.0595 yesterday. However, after dipping briefly to 1.0545, EUR rose quickly to a high of 1.0624. Upward momentum is improving, albeit not much. Today, EUR could rise to the major resistance at 1.0660 (minor resistance is at 1.0635). At this time, it does not appear to have enough momentum to move above this level in a sustained manner. Support is at 1.0590, followed by 1.0565.
Next 1-3 weeks: Yesterday (30 Oct, spot at 1.0560), we noted EUR is still trading in a range. We added, “given the lower volatility, it is likely to trade in a narrower range of 1.0510/1.0660.” EUR then rose to a high of 1.0624. Upward momentum has improved a tad, and the risk of EUR breaking above 1.0660 has increased. The risk of EUR breaking clearly above 1.0660 will remain intact as long as EUR stays above 1.0545 in the next few days. Looking ahead, the next levels to watch above 1.0660 are at 1.0695 and 1.0730.