EUR/USD could attempt a move to 1.20 and above – UOB
UOB Group’s FX Strategists noted EUR/USD is expected to shift the attention to the area above 1.2000 if 1.1980 is cleared in the next weeks.
Key Quotes
24-hour view: “Our expectation for EUR to ‘trade within a 1.1880/1.1935 range’ was wrong as it soared to a high of 1.1964 before closing on a firm note at 1.1962 (+0.41%). Upward momentum is strong and EUR is likely to continue to advance. A break of 1.1980 would not be surprising even though the year-to-date high at 1.2011 could be out of reach for now. Support is at 1.1940 followed by 1.1920.”
Next 1-3 weeks: “Last Thursday (26 Nov, spot at 1.1915), we held the view that EUR ‘is expected to strengthen but any advance is likely to be slow-going and 1.1980 may not come into the picture so soon’. While our view for a higher EUR was not wrong, the pace by which EUR is approaching 1.1980 is faster than expected. From here, a break of 1.1980 would shift the focus to the year-to-date high at 1.2011. A break of this rather critical level could potentially lead to a rapid rise towards the next resistance at 1.2060. All in, only a break of 1.1900 (‘strong support’ previously at 1.1840) would indicate that the risk for further EUR strength has dissipated.”
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
