EUR/USD: The level to monitor is 1.1730 – UOB Group

Euro (EUR) may break above 1.1700, but it remains to be seen if it can maintain a foothold above this level. In the longer run, EUR could advance; the level to monitor is 1.1730, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR can advance further

24-HOUR VIEW: "Our view for EUR to trade in a range yesterday was incorrect. Instead of trading in a range, EUR rose and closed on a firm note at 1.1659 (+0.44%). EUR continues to trade on a firm note in the early Asian session today. Strong momentum indicates further EUR strength, but while EUR may break above 1.1700, it remains to be seen if it can maintain a foothold above this level. The next resistance at 1.1730 is unlikely to come into view. To sustain the momentum, EUR must hold above 1.1630, with minor support at 1.1650."

1-3 WEEKS VIEW: "Last Thursday (19 Jun, spot at 1.1475), we highlighted that EUR 'is likely to trade in a range for now, probably between 1.1400 and 1.1570.' On Monday (24 Jun, spot at 1.1585), we indicated that 'while EUR has moved above 1.1570, there has been no significant increase in upward momentum.' However, we pointed out that 'given the increase in volatility, we now expect EUR to trade in a range of 1.1480/1.1660.' Yesterday, EUR rose to a high of 1.1665 and has continued to rise today. The rapid buildup in momentum suggests EUR could advance. The level to monitor is 1.1730. We will maintain our positive EUR view as long as 1.1595 (‘strong support’ level) is not breached."