FX Strategists at UOB Group now see EUR/USD advancing further on a close above 1.2030 in the next weeks.
Key Quotes
24-hour view: “Our expectation for EUR to ‘dip below 1.1880’ was incorrect as it dropped to 1.1884 before lifting off to 1.1985 during NY session. While the rapid surge has moved into overbought territory, EUR could continue to advance. That said, the major resistance at 1.2030 could be out of reach for now (there is another resistance at 1.2000). On the downside, a break of 1.1935 (minor support is at 1.1955) would indicate that the current upward pressure has eased.”
Next 1-3 weeks: “Two days ago (16 Mar, spot 1.1925), we highlighted that EUR is likely to trade sideways, expected to be between 1.1840 and 1.2030. There is no change in our view for now even though after the sharp bounce yesterday, the risk has shifted slightly to the upside. However, EUR has to close above the major resistance at 1.2030 before a sustained advance can be expected. At this stage, the prospect for such a move is not high but it would continue to increase as long as EUR does not move below 1.1900 within these few days. Looking ahead, the next resistance above 1.2030 is at 1.2070.”
Share
