EUR/USD faces a solid hurdle at 1.1495 – UOB

Markets Strategist at UOB Group Quek Ser Leang comments on the recent price action and prospects for EUR/USD.

Key Quotes

While EUR/USD rose above the cloud resistance and reached 1.1010, it then fell back lower. However, EUR/USD did not break below 1.0800 (low of 1.0832 last week). EUR/USD turned around strongly from 1.0832, and yesterday (12 July 2023), it jumped to a fresh year-to-date high of 1.1140. 

Weekly MACD appears poised to crossover into positive territory. This bodes well for further EUR/USD strength. On the weekly chart, there are hardly any significant resistance levels until the 2022 high of 1.1495. The top of the weekly exponential moving average envelope is also near 1.1495. However, it remains to be seen if EUR/USD has enough momentum to reach this solid resistance level in the next couple of months. Note that on the daily chart, EUR/USD has already moved above the top of the exponential moving average envelope.

This time around, in order to keep the momentum going, EUR/USD must stay above the trendline support, currently near 1.0880. This level is also near the 55-day exponential moving average. On a short-term note, 1.1010 is already a rather strong support level.