UOB’s Quek Ser Leang and Lee Sue Ann describe EUR/USD as neutral after a sharp opening rise, with only modest upward momentum. They see scope for the Euro to edge higher but doubt a sustained break of nearby resistance. Over the coming weeks, they expect EUR/USD to trade within a defined range while noting that a break of an ascending trendline could open deeper downside.

Euro holds in defined trading range

"24-HOUR VIEW: After EUR opened and rose sharply yesterday, we highlighted that “upward momentum is starting to build,” and we were of the view that EUR “could rise toward 1.1660.” We also highlighted that “the major resistance at 1.1685 is unlikely to come into view.” Our view did not materialise, as EUR edged to a high of 1.1653 during the early NY session before settling at 1.1643 (+0.35%). Although there has been no significant increase in upward momentum, EUR could still rise toward 1.1660. A clear break above this level appears unlikely, and the major resistance at 1.1685 is also unlikely to come into view. Support is at 1.1635, followed by 1.1620."

"1-3 WEEKS VIEW: After holding a negative view for more than a week, we indicated yesterday (25 May, spot at 1.1620) that EUR “is neutral now, and it is likely to trade between 1.1590 and 1.1685.” We continue to hold the same view."

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