FX Strategists at UOB Group remarked the need of EUR/USD to surpass the 1.1180 region to allow for extra gains.
24-hour view: “EUR rose to 1.1174 yesterday, just a few pips below last month’s peak near 1.1180. The rapid retreat from the high has resulted in a loss in momentum. That said, it is too early to expect a significant pullback. 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 within a 1.1125/1.1175 range”.
Next 1-3 weeks: “There is not much to add to the update from yesterday (31 Oct, spot at 1.1155). As highlighted, EUR has to punch through last month’s peak at 1.1179 or the current upward momentum could deteriorate quickly. Note that the positive phase in EUR that started earlier last month is in its fourth week now and if EUR were hover below the 1.1179 peak, the risk of a top would increase quickly. Looking ahead, a clear break of 1.1179 would increase the odds for a break of 1.1200 (the next resistance is at 1.1250). On the downside, only a move below 1.1090 (‘strong support’ level finally moved higher from 1.1070) would indicate that the current EUR strength has run its course”.