A Retest of 1.1290 for the Euro Against the US Dollar?

A retest of the 1.1290 level for the Euro (EUR) against the US Dollar (USD) seems plausible, though a substantial break above this mark appears unlikely. In the long term, the current momentum doesn’t indicate that there will be sustained progress. For the Euro to show significant improvement, it needs to decisively exceed 1.1290, according to FX analysts Quek Ser Leang and Peter Chia at UOB Group.

Momentum May Not Lead to Sustained Gains

In the past 24 hours, the expectation was for the Euro to have an upward bias. However, the current momentum doesn’t seem robust enough, suggesting that any upward movement would likely be capped at a test around 1.1225. Interestingly, the Euro reached 1.1288 before settling at 1.1242, which was an increase of 0.71%. Although this has diminished upward momentum, if it surpasses 1.1290, it might result in a decline back to around 1.1215, indicating a trading range rather than a retest of 1.1290.

Looking ahead, our last analysis from May 15 noted the Euro at 1.1180, and since then, it has shown some fluctuation, reaching as high as 1.1288 yesterday.