Euro: Upside bias hinges on 1.1565 break against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD has retreated to 1.1524 after failing several times near 1.1560. Intraday, they see scope for further pullback but expect strong support at 1.1495 to hold. Over the next 1–3 weeks, a close above 1.1565 would open the way toward 1.1600, while a break below 1.1495 would signal a shift into range trading.

Support at 1.1495, resistance at 1.1565

"24-HOUR VIEW: After EUR edged higher as we expected two days ago, we highlighted the following yesterday: “The mild upward pressure remains intact. Today, there is a chance for EUR to break above 1.1565, but it remains to be seen whether it can maintain a foothold above this level. Based on the prevailing momentum, the major resistance at 1.1600 is highly unlikely to come into view.” Our assessments turned out to be incorrect. From a high of 1.1559, EUR pulled back to 1.1514 before settling at 1.1524 (-0.23%). While there is scope for EUR to pull back further today, any decline is unlikely to break the strong support at 1.1495 (there is another support level at 1.1510). Resistance is at 1.1535, followed by 1.1550."

"1-3 WEEKS VIEW: Our most recent narrative was from Monday (03 Aug, spot at 1.1530), when we indicated that “there is a chance for EUR to test the significant resistance at 1.1565.” We added that “should EUR close above this level, it could rise toward 1.1600.” Over the past few days, EUR tested 1.1560 thrice but failed to break above. Upward momentum is starting to slow, and a break below 1.1495 (no change in ‘strong support’ level from yesterday) would mean that EUR has likely entered a range-trading phase."

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