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EUR/USD: Resistance at 1.1290 to unmask an overvalued euro

EUR/USD: Resistance at 1.1290 to unmask an overvalued euro

There are some indications of an overvaluation in the euro though the uptrend is not in danger until the 1.1290 resistance. MUFG Bank expects EUR/USD to trade at 1.13 in the fourth quarter.

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“Short-term implied valuations have turned higher, but there remains a significant gap between that and the spot EUR/USD. This keeps us cautious in chasing the pair excessively higher. Nevertheless, the upside momentum remains uncurtailed.” 

“For now, 1.1200 and 1.1240 may still attract, before firmer resistance around 1.1290.”

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