EUR/USD: Rising odds for a move beyond 1.2300 – UOB

UOB Group’s FX Strategists keep the bullish view on EUR/USD in the near-term.

Key Quotes

24-hour view: “Our expectation for EUR to ‘edge lower’ did not materialize as it traded between 1.2240 and 1.2306 before settling at 1.2294 (+0.38%). Upward momentum is beginning to improve and EUR appears poised to move above the 1.2309 peak seen earlier this week. That said, 1.2330 is another strong level and it is left to be seen if EUR can move clearly above this level. Support is at 1.2275 but only a break of 1.2250 would indicate the current upward pressure has eased.”

Next 1-3 weeks: “On Monday (04 Jan, spot at 1.2235), we highlighted that ‘odds for further EUR strength would diminish quickly unless EUR surges above 1.2309 and stays above this level within these few days’. EUR hovered below 1.2309 the past couple of days but shorter-term momentum is beginning to improve. A clear break of 1.2309 would shift the focus to 1.2330 followed by 1.2360. All in, the prospect for a sustained move above 1.2309 has increased but EUR has to stay above 1.2200 (‘strong support’ level previously at 1.2170).”