FX Strategists at UOB Group noted a move of EUR/USD to the 1.1900 levels still looks unfavoured.
Key Quotes
24-hour view: “We highlighted yesterday that ‘further EUR strength is unlikely’ and expected EUR to ‘consolidate within a 1.1820/1.1885 range’. While EUR did not strengthen further, it traded within a narrower range than expected (1.1810/1.1866). The current price action is still viewed as part of a consolidation phase. That said, the weakened underlying tone suggests EUR could drift lower within a lower trading range of 1.1790/1.1850.”
Next 103 weeks: “There is not much to add to our update from yesterday (21 Oct, spot at 1.1825). As highlighted, upward momentum is beginning to improve and the bias for EUR is tilted 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 (next resistance is at 1.1940). The current mild upward pressure is deemed as intact as long as EUR does not move below 1.1770 (‘strong support’ level was at 1.1745 yesterday).”
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