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