EUR/USD: Above 1.1620, EUR might move toward 1.1655 – UOB Group

Upward momentum continues to increase; if Euro (EUR) closes above 1.1620, it could lead to a move toward 1.1655, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Bullish momentum continues its upward pace

24-HOUR VIEW: "The following are excerpts from our update yesterday: 'Upward momentum has increased, albeit not significantly. Today, EUR could rise and potentially move above 1.1620. Based on the current overbought momentum, EUR is unlikely to maintain a foothold above this level'. The subsequent price movements did not turn out as expected. EUR rose but did not break above 1.1620, as it eased from a high of 1.1613 to close marginally higher by 0.01% at 1.1595. The underlying tone still appears firm, and there is scope for EUR to edge higher today. However, any advance is likely part of a 1.1580/1.1620 range. In other words, EUR is unlikely to break clearly above 1.1620."

1-3 WEEKS VIEW: "On Wednesday (26 Nov, spot at 1.1570), we noted that 'there has been a slight increase in upward momentum, but any advance is likely part of a 1.1520/1.1620 range'. After EUR rose to a high of 1.1600, we pointed out yesterday (27 Nov, spot at 1.1595) that 'upward momentum continues to increase, and if EUR breaks and closes above 1.1620, it could lead to a move toward 1.1655'. We will continue to hold the same as long as the ‘strong support’ at 1.1555 (level was at 1.1530 yesterday) is not breached."