The outlook for EUR/USD remains tilted to the upside in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted yesterday the ‘rebound appears to have scope to extend higher but a break of 1.1880 is unlikely’. Our expectation did not materialize as it traded between 1.1801 and 1.1859 before closing on a soft note at 1.1808 (-0.43%). Downward momentum has improved a tad and the bias for today is tilted to the downside. That said, 1.1770 is a strong support and may not be easy to break (minor support is at 1.1790). Resistance is at 1.1835 followed by 1.1860.”
Next 1-3 weeks: “We have the same view since last Wednesday (21 Oct, spot at 1.1825) wherein the bias for EUR ‘is titled to the upside but the major resistance at 1.1900 may not come into the picture so soon’. Shorter-term momentum still appears positive and we continue to see chance for EUR to move to 1.1900. At this stage, the prospect for a sustained advance above this level is not high. On the downside, a break of 1.1770 (no change in ‘strong support’ level) would indicate the current mild upward pressure has eased.”
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