FX Strategists at UOB Group still see EUR/USD advancing to the 1.2200 level in the next weeks.
Key Quotes
24-hour view: “Our expectation for EUR to ‘trade between 1.2110 and 1.2160’ was incorrect as it rose briefly to 1.2180 before easing off. Momentum indicators have barely budged and we continue to view the current movement as part of a consolidation. In other words, EUR is expected to trade sideways for today, likely between 1.2115 and 1.2175.”
Next 1-3 weeks: “EUR eked out a fresh high of 1.2180 yesterday before easing off. For now, we continue to hold the same view as from Monday (10 May, spot at 1.2165). As highlighted, after the strong surge in EUR last Friday, further EUR strength is likely. However, overbought shorter-term conditions could slow the pace of any further advance and while EUR could move above 1.2200, the prospect for a rise to 1.2240 is not that high for now. Overall, the current EUR strength is deemed intact as long as it does not move below the ‘strong support’ level at 1.2065 (no change in level).”
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