FX Strategists at UOB Group noted EUR/USD’s outlook remains constructive although a move to 1.19 appear unlikely for the time being.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is scope for EUR to test 1.1805 first before a more sustained pull-back can be expected’. We added, ‘the next resistance is at 1.1830’. The subsequent EUR strength exceeded our expectation as it soared to a high of 1.1840. The rapid advance over the past couple of days is deeply overbought now but robust momentum suggests there is room for EUR to stage another push higher to 1.1865. For today a break of the major resistance at 1.1900 is unlikely. Support is at 1.1800 followed by 1.1780.’
Next 1-3 weeks: “EUR rose to a high of 1.1840 before closing on a relatively firm note at 1.1821 (+0.47%). Upward momentum is beginning to improve and the bias from here is titled to the upside. That said, in view of the nascent build-up in momentum, the major resistance at 1.1900 may not come into the picture so soon. Support is at 1.1780 but only a break of 1.1745 (‘strong support’ level) would indicate that the current upward pressure has eased.”
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