EUR/USD Rebound Faces Key Cloud Barrier Ahead
The EUR/USD currency pair has staged a sharp rebound after drifting sideways since mid-June. According to UOB Group's Quek Ser Leang, this rebound was not surprising given the deeply oversold weekly slow stochastic.
The analyst notes that while there is scope for the pair to extend gains, it must first surpass the significant resistance at 1.1560/1.1565. This zone is critical resistance and aligns with both the daily Ichimoku cloud top and a weekly trendline.
Looking ahead, if EUR/USD breaks and holds above 1.1560/1.1565, it could rise toward 1.1622, the minor peak in June. However, if it breaks below 1.1445, the lower boundary of the daily Ichimoku cloud, it would mean that the top of the cloud may continue to act as significant resistance for some time.