Introduction:
The EUR saw a surge in early NY trade, reaching a 1-1/2 month high of 1.0000, exceeding expectations for the day. However, while further EUR strength appears likely, overbought conditions suggest limited upside with major resistance at 1.0335.
EUR Surges in Early NY Trade
Despite earlier expectations for the EUR to trade in a range of 1.0870/1.0940, the currency saw a significant surge in early NY trade, reaching a 1-1/2 month high of 1.0000. This exceeded expectations for the day and suggests that further EUR strength is likely.
Overbought Conditions Suggest Limited Upside
While further EUR strength is likely, overbought conditions suggest that a sustained break above the major resistance at 1.0335 is unlikely today. This suggests that the current upward pressure has eased and that there may be limited upside in the near future.
Support at 1.0960, Breach of 1.0930 Indicates Eased Upward Pressure
Support for the EUR currently sits at 1.0960, with a breach of 1.0930 indicating that the current upward pressure has eased. While further strength is likely, the overbought conditions suggest that there may be limited upside in the near future.
Conclusion:
Overall, the EUR saw a significant surge in early NY trade, exceeding expectations for the day. However, overbought conditions suggest that there may be limited upside with major resistance at 1.0335. With support at 1.0960 and a breach of 1.0930 indicating eased upward pressure, the EUR may see further strength in the near future, but with caution due to overbought conditions.
