EUR / USD maintains its positive bias unchanged – UOB

The currency strategists of UOB Group noted that the EUR / USD momentum remains positive, but a move towards 1.19 is out of place for now.

24 hour perspective: “We highlighted yesterday that there was room for the EUR to make another push up to 1.1865. We added that the main resistance at 1.1900 was unlikely to break. Our view was not bad as the euro contracted after hitting a high of 1.1880. The bullish momentum is showing signs of slowing down and this, coupled with the overbought conditions, suggests that it is unlikely the EUR will continue to strengthen today. However, it appears that it is too early to expect a sustained pullback. In general, the common currency is more likely to consolidate and trade within a range of 1.1820 / 1.1885 (A sustained drop below 1.1820 is unlikely) ”.

Next 1-3 weeks: “Not much to add to our update yesterday (Oct 21, par at 1.1825). As highlighted, the bullish momentum is starting to improve and the EUR bias is leaning higher. That said, in view of the incipient buildup of momentum, the main resistance at 1.1900 may not enter the scene as soon (next resistance is at 1.1940). The current slight upward pressure is considered intact as long as the EUR does not move below 1.1770 (strong support level was at 1.1745 yesterday). ”

Credits: Forex Street

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