EUR/USD: Likely to trade with an upward bias - UOB Group

There is a chance for EUR to test 1.1685; a sustained rise above this level appears unlikely. In the longer run, Euro (EUR) is likely to trade with an upward bias; it is unclear for now if it can reach 1.1720, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Unclear for now if EUR/USD can reach 1.1720

24-HOUR VIEW: "EUR dipped to a low of 1.1525 two days ago before recovering. In the early Asian trade yesterday, we noted that 'the recovery has resulted in a slight increase in upward momentum.' We expected EUR to 'edge higher,' but we were of the view that 'any advance is likely limited to a test of 1.1605.' However, instead of edging higher and testing 1.1605, EUR soared and broke above this level, reaching a high of 1.1668. The advance appears excessive but there is no indication of a slowdown just yet. Today, there is a chance for EUR to test 1.1685. A sustained break above this level appears unlikely. Support is at 1.1635; a breach of 1.1615 would indicate that EUR is not advancing further."

1-3 WEEKS VIEW: "We have expected EUR to trade in a range since early this week. Yesterday (06 Aug, spot at 1.1575), we pointed out that 'while we continue to expect EUR to trade in a range, given the subdued price action over the past few days, a narrower range of 1.1480/1.1660 is likely sufficient to contain the price movements for now.' EUR subsequently rose slightly above the top of our expected range, reaching a high of 1.1668. The increase in momentum suggests EUR is likely to trade with an upward bias for now. Currently, it is unclear whether if it can reach 1.1720. To sustain the momentum, EUR must hold above the 'strong support' level, currently at 1.1560."