According to FX Strategists at UOB Group, EUR/USD is now targeting the key barrier at 1.20 in the next weeks.
Key Quotes
24-hour view: “We did not anticipate the strong surge in EUR that sent it to a high of 1.1919 last Friday. EUR extended its gains upon opening this morning and in view of the strong momentum, further advance would not be surprising. That said, a sustained rise above the month-todate high at 1.1965 appears unlikely (next resistance is at 1.2000). Support is at 1.1880 but only a breach of 1.1855 would indicate the current upward pressure has eased.”
Next 1-3 weeks: “Our latest narrative from last week was that EUR is still likely in a consolidation phase and ‘only a daily closing out of the 1.1740/1.1930 range would indicate that EUR is ready for a sustained directional move’. EUR popped to a high of 1.1919 on Friday and closed on a strong note at 1.1903 (+0.69%). While EUR did not close above 1.1930, upward momentum has improved considerably and from here, EUR is expected to trade with an upward bias towards the major resistance at 1.2000. For now, the odds for a sustained rise above this level are not high. On the downside, 1.1815 is acting as a ‘strong support’ level and only a break of this level would indicate that EUR is not ready to tackle 1.2000 just yet.”
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