UOB Group currency strategists note that EUR / USD outlook remains constructive, although a move to 1.19 seems unlikely at the moment.
Key Comments:
24 hour view: “We highlighted yesterday that ‘there is room for the EUR / USD to first test 1.1805 before a more sustained pullback can be expected.’ We added, ‘the next resistance is at 1.1830′. The subsequent strength of the EUR exceeded our expectations as it rose to a high of 1.1840. The rapid advance of the past few days is deeply overbought now, but robust momentum suggests that there is room for the EUR to make another push to the upside to 1.1865. For today, the main resistance at 1.1900 is unlikely to break.. Support is at 1.1800 followed by 1.1780 “.
Next 1-3 weeks: “The EUR rose to a high of 1.1840 before closing relatively firm at 1.1821 (+ 0.47%). Bullish momentum is starting to improve and the bias from here points to the upside. Having said that, In view of the incipient build-up of momentum, the main resistance at 1.1900 may not enter the scene as soon.. Support is at 1.1780, but only a breakout of 1.1745 (‘strong support’ level) would indicate that current bullish pressure has eased. ”
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Credits: Forex Street
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