In opinion of FX Strategists at UOB Group, EUR/USD is now expected to meet the next significant resistance at 1.2185.
Key Quotes
24-hour view: “The strong surge in EUR to 1.2099 last Friday came as a surprise. Upward momentum is strong and EUR could break the major resistance at 1.2115. However, overbought conditions suggest it may not be able to maintain a foothold above this level. The next resistance at 1.2145 is unlikely to come into the picture. Support is at 1.2070 followed by 1.2050.”
Next 1-3 weeks: “The positive phase in EUR is moving into its third week now. In our latest narrative from last Thursday (22 Apr, spot at 1.2035), we highlighted ‘as long as EUR does not move below 1.1965, there is still scope for it to advance to 1.2115’. EUR soared to 1.2099 on Friday and the boost in upward momentum suggests that a break of 1.2115 would not be surprising. Looking ahead, the next major resistance is above this level is at 1.2185 (there is a minor resistance at 1.2145). Overall, the positive phase is deemed intact as long as EUR does not move below 1.2020 (‘strong support’ level previously at 1.1965).”
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