FX Strategists at UOB Group remain constructive on EUR/USD and see extra gains on a close above 1.1020 in the near-term.
Key Quotes
24-hour view: “Our expectation for the ‘rapid advance in EUR to take a breather’ was incorrect as it dropped briefly to 1.0932, snapped back up to 1.1030 before easing off to end the day at 1.1003 (+0.21%). Despite the overall choppy price actions, the underlying tone appears to be firm. For today, EUR could ratchet higher but is unlikely to break the strong resistance at 1.1050. On the downside, only a break of 1.0955 would indicate the current tentative upward pressure has eased.”
Next 1-3 weeks: “EUR continues to trade in a choppy manner as it surged and recouped most of last week’s decline (1.0980, +0.54%). The advance is quickly approaching the top our expected 1.0800/1.1000 range (overnight high of 1.0995) and upward momentum has ticked up. While the bias is tilted to the upside, EUR has to close above 1.1020 before a more sustained advance can be expected. In the meanwhile, the outlook for EUR is deemed as mildly positive as long as it does move below 1.0900 within these few days.”
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