EUR/USD: Still room for a test of 1.1800 – UOB
|According to FX Strategists at UOB Group, EUR/USD could still visit the 1.1800 level in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘upward momentum has improved a tad and while the bias is still on upside, a break of the major resistance at 1.1800 appears unlikely’. Our view was not wrong as EUR rose to 1.1779 before easing off. Upward momentum is beginning to wane and the risk of EUR moving to 1.1800 is slim. The current movement is viewed as part of a consolidation phase and EUR is expected to trade sideways, likely within a 1.1735/1.1775 range.”
Next 1-3 weeks: “Our narrative from Tuesday (24 Aug, spot at 1.1745) still stands. As highlighted, ‘the rebound in EUR has scope to extend to 1.1800’. We added, ‘at this stage, the odds for a sustained advance above 1.1800 are not high’. EUR rose to 1.1779 yesterday (26 Aug) before easing off. Shorter-term upward momentum is beginning to wane but only a break of 1.1705 (no change in ‘strong support’ level) would indicate that 1.1800 is out of reach.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.