EUR/USD: Next resistance at 1.1850 is unlikely to come under threat – UOB Group

Increase in momentum could lead to Euro (EUR) testing 1.1820 against US Dollar (USD); the next resistance at 1.1850 is unlikely to come under threat. In the longer run, EUR view remains positive; the levels to watch now are 1.1820 and 1.1850, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR view remains positive

24-HOUR VIEW: "Yesterday, we noted that 'there has been a slight increase in upward momentum.' We also indicated that 'this is likely to lead to EUR trading in a higher range of 1.1685/1.1765.' Instead of trading in a higher range, EUR soared and closed at its highest level since Sep 2021 (1.1786, +0.56%). The rapid increase in momentum is likely to lead to further EUR strength, possibly testing 1.1820. Based on the current overbought momentum, EUR is unlikely to threaten the next resistance at 1.1850. Support is at 1.1750; a breach of 1.1730 would suggest the upward momentum is fading."

1-3 WEEKS VIEW: "We revised our EUR view to positive last Thursday (26 Jun, spot at 1.1670). In our most recent narrative from last Friday (27 Jun, spot at 1.1700), we expected 'further EUR strength.' We pointed out that 'the next level to monitor is 1.1780.' Yesterday, EUR rose above 1.1780, reaching a high of 1.1788. We continue to view EUR positively. The levels to watch now are 1.1820 and 1.1850. We will continue to hold the same view as long as 1.1680 (‘strong support’ level previously at 1.1620) is not breached."