EUR/USD could still visit the 1.1180 region – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, the upside momentum in EUR/USD could extend to the 1.1180 region.

Key Quotes

24-hour view: “EUR traded between 1.1072 and 1.1118 yesterday, lower than our expected sideway-trading range of 1.1080/1.1125. The relatively firm daily closing in NY (1.1110, +0.11%) has resulted in an uptick in momentum. From here, barring a move below the strong 1.1070 support (minor support is at 1.1090), EUR could edge higher towards 1.1130. The next resistance at 1.1160 is likely out of reach”.

Next 1-3 weeks: “EUR came close to taking out the 1.1070 ‘strong support’ level again yesterday but it rebounded after touching 1.1072 (note that EUR touched 1.1071 last Friday). As highlighted yesterday (29 Oct, spot at 1.1100), the prospect for further EUR strength has diminished but “there is still a slim chance for a move to 1.1180”. That said, in order to rejuvenate the flagging momentum, EUR has to move and stay above 1.1160 within these 1 to 2 days or a break of 1.1070 would suggest the positive phase in EUR that started earlier this month has run its course. Looking forward, a breach of 1.1070 would suggest EUR could trade sideways to slightly lower for a period”.

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.