EUR/USD expects tough resistance around 1.1860 – UOB

FX Strategists at UOB Group argued the pair’s upside should face considerable resistance in the 1.1860 region.

Key Quotes

24-hour view: “The sharp swing higher in EUR was unexpected. While the immediate pressure is still clearly on the upside, any further advance is expected to face considerable resistance near last week’s high at 1.1860 (next resistance is at 1.1900). Support is at 1.1790 but only a move back below 1.1760 would indicate that the upward pressure has eased”.

Next 1-3 weeks: “EUR regained some of the losses registered earlier this week but is still holding within our expected 1.1655/1.1860 sideway consolidation range. The undertone has improved considerably and a move above 1.1860 would not be surprising. However, only a clear break above 1.1900 (say a daily closing above this level) would indicate the start of a sustained up-move. The odds for such a move are not high at this stage but would continue to improve as long the short-term key support at 1.1730 is intact. On a shorter-term note, 1.1760 is already a relatively strong level”.