In opinion of FX Strategists at UOB Group EUR/USD could now attempt a move to the 1.2200 mark in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘robust momentum suggests further EUR strength’. We added, ‘the next resistance is at 1.2100 followed by 1.2130’. Our view was not wrong as EUR surged to a high of 1.2118 during late NY hours before closing on a firm note at 1.2115 (+0.37%). While overbought, the current rally is not showing sign of slowing just yet. From here, EUR could advance further to 1.2155. The major resistance at 1.2200 is likely out of reach for now. On the downside, 1.2040 is expected to be strong enough to hold any pullback (minor support is at 1.2070).”
Next 1-3 weeks: “There is not much to add to our update from yesterday (02 Dec, spot at 1.2065). As indicated, EUR ‘has moved into its next up-leg’ and the level to focus on is at 1.2200. On the downside, the ‘strong support’ level has moved higher to 1.2010 from yesterday’s level of 1.1950. Looking forward, the next major resistance is above 1.2200 is at 1.2300.”
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