The Euro (EUR) is expected to edge higher; the 1.0960 level is expected to offer strong resistance. But EUR has to surpass 1.1010 before further advance to 1.1070 can be expected, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

EUR may test in the near term

24-HOUR VIEW: “Yesterday, we indicated that ‘the current price action is likely part of a consolidation phase,’ and we expected EUR to trade between 1.0895 and 1.0960. Our view of consolidation was correct, even though EUR traded in a much narrower range than expected (1.0905/1.0936), closing largely unchanged at 1.0921 (-0.08%). Despite the quiet price action, upward momentum seems to be building, albeit tentatively. Today, we expect EUR to edge higher. However, the 1.0960 level is expected to offer strong resistance. Support is at 1.0915, followed by 1.0900.”

1-3 WEEKS VIEW: “Our update from two days ago (06 Aug, spot at 1.0955) still stands. As highlighted, ‘while the outlook for EUR is still positive, it has to surpass 1.1010 before further advance to 1.1070 can be expected.’ On the downside, should EUR breach the ‘strong support’ at 1.0875 (level previously at 1.0855), it would mean that EUR is not ready to move above 1.1010.”