EUR/USD is expected to edge higher to the area above the 1.1000 mark in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our view from yesterday that EUR ‘could break 1.0950 but 1.0990 is likely out of reach’ was not wrong as EUR retreated after rising to 1.0976. While upward momentum is beginning to show signs of waning, it is too early to expect a sustained pull-back. From here, EUR is more likely to consolidate and trade sideways. Expected range for today, 1.0885/1.0960.”
Next 1-3 weeks: “We have maintained a mixed outlook in EUR since 06 May and expected EUR to trade in an erratic manner within a broad range. After ‘going nowhere’ for about 2 weeks, EUR was jolted awake yesterday as it surged past several strong resistance levels with ease and posted a huge gain of +0.90% (1.0912), the biggest 1-day advance in 6 weeks. Upward momentum has improved and from here, EUR is expected to trade with an upward bias toward the early-May high of 1.1017. At this stage, the odds for a clear break of this level are not high. On the downside, 1.0825 is acting as a ‘strong support’ level.”
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