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#1 15-05-2019 05:19:29

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Registered: 21-12-2009
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EUR/USD: the euro's rise on the forex is slowing down (UOB)

EUR/USD: the euro's rise on the forex is slowing down (UOB)

UOB analysis of the EUR/USD pair:

Intraday analysis

The EUR/USD traded between 1.1220 and 1.1265 on Monday, close to the expected lateral trading range of 1.1215 to 1.1256. The rapid decline from 1.1265 has weakened the underlying tone and intraday risk is down. However, any weakness should find solid support at 1.1205 (there is another solid level at 1.1185). It is unlikely that Monday's peak of 1.1265 will be called into question now (minor resistance is at 1.1245).

Short-term analysis

No change in view since Monday, see update below. Note that the EUR/USD tested 1.1265 for the second time but fell back and finished lower. EUR must exceed 1.1265 within 1 to 2 days, otherwise the prospect of such a move would rapidly decrease.

The EUR/USD reached 1.1253 last Friday before easing off to end the day slightly higher (NY close at 1.1233, +0.11%). Price action offers no new indicators and we maintain the same view as observed earlier this month, that the euro should "move sideways", but that being said, the underlying tone improved slightly and the risk of breaking above the top of the expected range of 1.1110/1.1265 increased. Overall, the momentum gained should accelerate if the EUR can continue to record higher daily closes. A downward move below 1.1185 would indicate that the current upward trend has ended. In the future, if the daily close level were higher than 1.1225, this would indicate that the euro is ready to move towards 1.1325.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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