Ella 
After the euro rose sharply on Tuesday, we emphasized yesterday that “although overbought, the rapid rise of the euro may test 1.0915 before falling back, but the probability of threatening the important resistance level of 1.0955 is very low. Support is at 1.0855, and then 1.0835.” It fell to a low of 1.0853 during the London session, before surging to a high of 1.0945 during the North American session. Conditions remain overbought, but there is no sign of a pullback yet. The euro may rise above 1.0955 today. The euro may not be able to sustain above this level due to overbought conditions. A break above the next resistance level of 1.1000 today would be a surprise. Support is located at 1.0905, then 1.0870.
Next 1-3 weeks: Yesterday (market price 1.0870 on August 30), we believe that the recent decline of the euro has stabilized. We expect the euro to rise, but “whether it can move above 1.0955 remains to be seen.” We did not expect the euro to rise quickly to 1.0945. The upward momentum is further strengthened. If the euro breaks and remains above 1.0955, the next level will focus on 1.1000. At this stage, it is too early to expect the euro to hit strong resistance at 1.1045. Overall, only a break above 1.0835 (yesterday’s ‘strong support’ level was at 1.0805) would indicate that current upward pressure has eased.
