Spot is seeing testing/surpassing the critical 1.1900 handle in the next week, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected further EUR strength yesterday but were of the view that the strong 1.1865 resistance would not “yield so easily”. The overnight high has been 1.1869 and with no sign of weakness just yet, EUR is expected to continue to ‘drift’ higher towards the next resistance at 1.1900. At this stage, a sustained move above this level is not expected (next resistance is at 1.1930). Support is at 1.1835 but the stronger level is closer to 1.1810”.
Next 1-3 weeks: “There is not much to add as we continue to hold the view that the current recovery in EUR has room to extend higher to 1.1930. While it is early days still, the odds for a sustained move above 1.1930 have improved. Overall, this pair is expected to stay underpinned in the coming days as long as the key short-term support at 1.1760 is intact. On a shorter-term note, 1.1810 is already a strong support”.
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