In opinion of FX Strategists at UOB Group, EUR/USD still faces a significant hurdle in the 1.1180 region.
Key Quotes
24-hour view: “EUR traded between 1.1126 and 1.1171 last Friday, relatively close to our expected sideway-trading range of 1.1125/1.1175. The underlying tone has improved somewhat and from here, EUR could edge above last month’s peak near 1.1180. In view of the lackluster momentum, the next resistance at 1.1200 is unlikely to come into the picture. Support is at 1.1140 followed by 1.1125″.
Next 1-3 weeks: “There is not much to add to the update from yesterday (31 Oct, spot at 1.1155). As highlighted, EUR has to punch through last month’s peak at 1.1179 or the current upward momentum could deteriorate quickly. Note that the positive phase in EUR that started earlier last month is in its fourth week now and if EUR were hover below the 1.1179 peak, the risk of a top would increase quickly. Looking ahead, a clear break of 1.1179 would increase the odds for a break of 1.1200 (the next resistance is at 1.1250). On the downside, only a move below 1.1090 (‘strong support’ level finally moved higher from 1.1070) would indicate that the current EUR strength has run its course”.
Share
