UOB Group’s FX Strategists now se EUR/USD targeting the 1.2115 level in the near-term.
24-hour view: “We expected EUR to ‘advance further to 1.2065’ yesterday but we were of the view that the ‘the next resistance at 1.2115 is unlikely to come into the picture’. EUR subsequently rose to 1.2079 before dropping quickly to end the day unchanged at 1.2033. Upward momentum has waned considerably and the current movement is viewed as part of a consolidation phase. In other words, EUR is likely to trade sideways for today, expected to be between 1.2010 and 1.2065.”
Next 1-3 weeks: “We continue to hold the same view from yesterday (20 Apr, spot at 1.2035). As highlighted, the positive phase in EUR that started 2 weeks ago received a boost in momentum and the next level to focus on is at 1.2115. EUR subsequently rose to 1.2079 before easing off. The positive phase in EUR is deemed intact as long as it does not move below 1.1965 (no change in ‘strong support’ level). Meanwhile, shorter-term conditions are overbought and this could lead to a couple of days of consolidation first.”