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FX Strategists at UOB noted the uptrend in EUR/USD could re-visit the 1.2150 region in the next weeks.

Key Quotes

24-hour view: “The strong surge in EUR that sent it to soaring and the subsequent strong daily closing of 1.2117 (+0.57%) came as a surprise. While overbought, the rally as room to move above 1.2150 but the next major resistance at 1.2180 is likely out of reach for now. Support is at 1.2090 followed by 1.2070.”

Next 1-3 weeks: “We noted two days ago (08 Feb, spot at 1.2045) that the recent ‘weak phase has run its course’ and we expected EUR to ‘trade between 1.1950 and 1.2150’. While our view was not wrong, the sharp and rapid manner by which EUR moves towards 1.2150 came as a surprise (overnight high of 1.2121). The rapid advance appears to be running ahead of itself but vastly improved upward momentum suggests the current EUR strength could break 1.2150 and extend to 1.2180. The upward pressure is deemed intact as long as EUR does not move below the ‘strong support’ level of 1.2045.”