The EUR has been gaining momentum and is expected to advance further to 1.0740, according to the 24-hour view. However, major resistance at 1.0800 is not expected to come under threat. A breach of minor support at 1.0620 could indicate a easing of upward pressure.
EUR gains momentum, expected to reach 1.0740
According to the 24-hour view, the EUR has been gaining momentum and is expected to advance further to 1.0740. This follows the currency’s jump to a high of 1.0700, which exceeded expectations. While the upward momentum has improved, it is not considered significant.
The EUR’s recent gains can be attributed to a number of factors, including a weaker US Dollar and improved economic data in the Eurozone. However, major resistance at 1.0800 is not expected to come under threat, limiting the currency’s potential for further gains.
Limited potential for breach of major resistance at 1.0800
Despite the EUR’s recent gains, major resistance at 1.0800 is not expected to be breached. This level has acted as a significant barrier to upward momentum in the past and is likely to continue to do so.
Investors remain cautious about the outlook for the Eurozone economy, particularly with regards to the ongoing COVID-19 pandemic and the slow pace of vaccination in some countries. These factors could limit the EUR’s potential for further gains and prevent a breach of major resistance at 1.0800.
Downside risks remain
While the 24-hour view is positive for the EUR, there are still downside risks to consider. A breach of minor support at 1.0620 (with additional support at 1.0660) could indicate that the current upward pressure has eased. This would limit the EUR’s potential for further gains and could lead to a period of consolidation or even a reversal.
Investors will also be closely watching developments in the US, particularly with regards to the Federal Reserve’s monetary policy and any new stimulus measures from the US government. These factors could impact the US Dollar and, in turn, the EUR.
Conclusion
In conclusion, the 24-hour view suggests that the EUR is expected to advance further to 1.0740, but major resistance at 1.0800 is not expected to come under threat. Downside risks remain, including the potential for a breach of minor support at 1.0620. Investors will be closely watching developments in the Eurozone and the US to gauge the outlook for the currency in the coming days and weeks.
