Euro: Upside capped by key resistance against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann report EUR/USD holding near 1.1540 after a quiet session, with momentum indicators mostly flat. Intraday, they expect consolidation between 1.1530 and 1.1560, but a break above 1.1560 could trigger a quick move to 1.1580. Over the next 1–3 weeks, further gains require a close above 1.1580 to open 1.1600 and beyond.

Euro holds but needs a breakout

"24-HOUR VIEW: When EUR was at 1.1545 in the early Asian session yesterday, we noted that “momentum indicators are mostly flat,” and we expected EUR “to trade in a range between 1.1530 and 1.1560.” EUR subsequently traded within a tight range of 1.1530/1.1549, closing largely unchanged at 1.1540 (-0.02%). The price action provides no fresh clues, and we continue to expect EUR to trade between 1.1530 and 1.1560. That said, should EUR break above 1.1560, it could trigger a quick rise toward 1.1580."

"1-3 WEEKS VIEW: We continue to hold the same view as yesterday (11 Aug, spot at 1.1545). As highlighted, “the hurdle for further gains has risen,” and EUR “must close above 1.1580 before a move to 1.1600 and beyond can be expected." On the downside, if EUR breaks below 1.1515 (no change in ‘strong support’ level), it would indicate that EUR is not rising further"

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)