In opinion of FX Strategists at UOB Group, EUR/USD could surpass the 1.1900 mark in the next weeks.
Key Quotes
24-hour view: “Yesterday, we expected EUR to ‘drift lower’ but we were of the view that ‘any weakness is viewed as a lower trading range of 1.1825/1.1875 and that a sustained decline below 1.1825 is unlikely’. EUR dropped briefly to a low of 1.1815 before soaring to a high of 1.1882 (closed at 1.1873, +0.18%). The relatively strong upward momentum suggests further EUR strength is likely but in view of the already overbought conditions, any advance is unlikely to break the major resistance at 1.1920 (1.1900 is already quite a strong level). On the downside, a breach of 1.1835 would indicate the current upward pressure has eased (minor support is at 1.1850).”
Next 1-3 weeks: “There is not much to add to our latest update from Tuesday (17 Nov, spot at 1.1860). As highlighted, upward momentum has improved slightly but EUR has to close above 1.1920 in order to indicate that it has moved out of its consolidation phase. Since then EUR has not been able to make much headway on the upside but as long as 1.1790 is intact (no change in ‘strong support’ level), there is still chance for EUR to make a push above 1.1920.”
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