EUR/USD: Sustained gains seen above 0.9935 – UOB

UOB Group’s Markets Strategist Quek Ser Leang and Economist Lee Sue Ann see EUR/USD facing extra gains once 0.9935 is cleared.

Key Quotes

24-hour view: “EUR rose to a 2-1/2 -week high of 0.9899 yesterday before closing at 0.9874 (+0.14%). Upward momentum is building and the risk for today is tilted to the upside. However, the chance of EUR breaking the major and solid resistance at 0.9935 is not high for now. On the downside, a breach of 0.9835 (minor support is at 0.9860) would indicate that the build-up in momentum has fizzled out.”

Next 1-3 weeks: “EUR closed at 0.9874 yesterday, its highest daily closing since early this month. Short-term upward momentum is beginning to build and the risk for EUR is shifting to the upside. That said, EUR has to break the major and solid resistance at 0.9935 first before a sustained advance is likely. The odds of EUR breaking 0.9935 will remain intact as long as it does not move below 0.9780 (‘strong support’ level) within the next few days. Looking ahead, the next resistance above 0.9935 is at 1.0000.”