EUR/USD: Bulls may try to test the 1.0960 resistance – UOB Group

The Euro (EUR) could edge higher; as upward momentum is not strong, any advance is unlikely to break above 1.0960. If EUR breaches 1.0875, it would mean that the likelihood of it rising to 1.1010 has faded, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Predominantly flat on the day

24-HOUR VIEW: “We expected EUR to consolidate between 1.0895 and 1.0930 yesterday. However, EUR edged to a high of 1.0939 before closing higher at 1.0931 (+0.12%). There has been a slight increase in momentum, and USD could continue to edge higher today. As upward momentum is not strong for now, any advance is unlikely to break the resistance at 1.0960. On the downside, should EUR breach 1.0905 (minor support is at 1.0920), it would indicate that the current mild upward pressure has eased.”

1-3 WEEKS VIEW: “After EUR surged to a high of 1.1008 and then pulled back, we indicated last Tuesday (06 Aug, spot at 1.0955) that EUR ‘is still positive, but it has to surpass 1.1010 before further advance to 1.1070 can be expected.’ EUR subsequently traded mostly sideways. Yesterday (12 Aug, spot at 1.0915), we indicated that if EUR breaches the ‘strong support’ level at 1.0875, it would mean the likelihood of it rising to 1.1010 has faded. Our view remains unchanged.”