EUR/USD faces a tough resistance around 1.0700 – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note further upside in EUR/USD is expected to meet a strong resistance around 1.0700.

Key Quotes

24-hour view: EUR soared by 0.71% (NY close of 1.0668) yesterday and closed at its highest level in more than a month. The advance is accompanied by strong upward momentum, and further EUR strength appears likely today. However, any advance is likely to face solid resistance at 1.0700. The major resistance at 1.0740 is unlikely to come under threat. In order to keep the momentum going, EUR must stay above 1.0625 (minor support is at 1.0645).

Next 1-3 weeks: Yesterday, EUR soared by 0.71% (1.0668) and closed at its highest level in about a month. The price action appears to be part of a rebound that is likely to extend above 1.0700. At this stage, it is too early to tell if EUR has enough momentum to reach the major at 1.0740. The risk of a further rebound will remain intact as long as EUR stays above 1.0600 in the next few days.