EUR/USD still looks to 1.1930 – UOB
|FX Strategists at UOB Group noted EUR/USD is predicted to accelerate the upside if 1.1930 is cleared.
Key Quotes
24-hour view: “Yesterday, we held the view that ‘there is room for EUR to make one more push higher towards 1.1930 (minor resistance is at 1.1905) before a sustained pullback can be expected’. While EUR did make another push higher, it only touched 1.1915 before retreating quickly. Upward momentum has eased somewhat but there is still room for EUR to edge higher but any advance is viewed as part of a broad 1.1820/1.1930 range (a sustained advance above 1.1930 is unlikely).”
Next 1-3 weeks: “We highlighted on Tuesday (04 Aug, spot at 1.1760) that EUR ‘is in the early stages of a consolidation phase’ and ‘is expected to trade between 1.1600 and 1.1900’. The rapid manner by which EUR moved towards the top of the range was not exactly expected (overnight high of 1.1905). While upward momentum is beginning to improve, it appears too early to expect a resumption of the recent positive phase in EUR. Only a daily closing above 1.1925 would indicate that EUR is ready to tackle the round-number resistance at 1.2000. At this stage, the probability for such a move is not high but it would continue to increase as long as EUR does not move below the ‘strong support’ at 1.1780.”
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