EUR/USD looks at 1.1000 – UOB

The continuation of the bullish bias could lift EUR/USD to the key 1.1000 zone in the coming weeks, according to economist Lee Sue Ann and Market Strategist Quek Ser Leang of UOB Group.

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24-hour outlook: Yesterday we highlighted that “further EUR/USD strength appears likely, but a sustained rise above 1.0945 is unlikely.” We added that “the next major resistance at 1.1000 is also unlikely to be on the horizon.” Our view was not wrong, as EUR/USD peaked at 1.0951 before settling at 1.0938 (+0.28%). Bullish momentum has increased, although not by much. Today, the risk remains that EUR/USD rises, even if it does not have enough momentum to reach 1.1000. Support is at 1.0920; a break of 1.0900 would mean that the upside risk has decreased.

Next 1-3 weeks: Last Wednesday (November 15, EUR/USD at 1.0880), we highlighted that “further EUR/USD strength appears likely, and the level to watch is 1.0945.” Yesterday (November 20, EUR/USD at 1.0905), we highlighted that EUR/USD is likely to continue strengthening, and if it breaks above 1.0945, the next level to watch is 1.1000. EUR/USD broke above 1.0945 during the American session (high 1.0951). We continue to expect EUR/USD to strengthen and, as we have indicated, the next level to watch is 1.1000. Looking ahead, breaking 1.1000 would shift attention to 1.1065. On the downside, the “strong support” level has risen to 1.0860 from 1.0820. If EUR/USD breaks below “strong support”, it would mean that it is not going to strengthen further.

Source: Fx Street

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