UOB Group’s FX Strategists noted EUR/USD faces a mixed outlook for the time being.
Key Quotes
24-hour view: “We expected EUR to strengthen last Friday but we were of the view that EUR ‘is unlikely to break the strong resistance at 1.2125’. The strong surge that sent EUR to a high of 1.2143 came as a surprise. While the rapid rise appears to be running ahead of itself, there is room for EUR to advance further but a break of last week’s peak near 1.2170 is not expected (1.2150 is already quite a strong level). Support is at 1.2100 followed by 1.2080.”
Next 1-3 weeks: “After EUR dropped sharply to 1.2021, we highlighted last Thursday (18 Feb, spot at 1.2045) that ‘the bias for EUR has shifted to the downside towards 1.2000’. We added, EUR ‘is deemed to be under pressure unless it can move back above 1.2125’. Our view was proven incorrect as EUR soared to a high of 1.2143 last Friday. The sharp but short-lived price actions have resulted in a mixed outlook. From here, EUR is expected to trade between 1.2050 and 1.2200 for a period of time.”
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