EUR/USD could attempt a move to 1.2200 – UOB

FX Strategists at UOB Group noted EUR/USD is poised to challenge 1.2200 in the near-term.

Key Quotes

24-hour view: “Yesterday, we expected EUR to ‘consolidate and trade between 1.2110 and 1.2165’. However, EUR rose to 1.2177 before pulling back (low has been 1.2126). We continue to view the current movement as part of a consolidation even though the slightly weakened underlying tone suggests EUR is likely to trade within a lower range of 1.2110/1.2160.”

Next 1-3 weeks: “We continue to hold the same view from yesterday (10 May, spot at 1.2165). As highlighted, after the strong surge in EUR last Friday, further EUR strength is likely. However, overbought shorter-term conditions could slow the pace of any further advance and while EUR could move above 1.2200, the prospect for a rise to 1.2240 is not that high for now. Overall, the current EUR strength is deemed intact as long as it does not move below the ‘strong support’ level at 1.2065 (no change in level’). On a shorter-term note, 1.2110 is already quite a solid support.”