EUR/USD: Door open to a test of the mid-1.1900s – UOB

FX Strategists at UOB Group noted EUR/USD could edge higher and re-visit the 1.1945 level in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that there is room for EUR to ‘test 1.1925’. Our expectation did not quite materialize as EUR rose to 1.1919. Upward momentum has improved slightly but while EUR could advance further, a clear break of the major resistance at 1.1945 is unlikely (next resistance is at 1.1985). On the downside, a breach of 1.1875 (minor support at 1.1890) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Our update from yesterday (12 Apr, spot at 1.1895) still stands. As highlighted, upward momentum has waned but there is still chance for EUR to move higher to 1.1945 (we have expected a move to 1.1945 since last Wednesday. EUR closed on a relatively firm note in NY (1.1909, +0.11%) but shorter-term momentum remains lackluster. That said, EUR could edge above 1.1945 but the next resistance at 1.1985 is unlikely to come into the picture. A breach of 1.1850 (‘strong support’ level was at 1.1830 yesterday) would indicate that the upside risk has dissipated.”