EUR/USD faces further gains above 1.1485 – UOB

EUR/USD needs to clear 1.1485 to allow for a potential move to 1.1520 in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected EUR to ‘consolidate and trade within a range of 1.1405/1.1465’ yesterday. EUR subsequently traded between 1.1394 and 1.1448 before closing at 1.1414 (-0.24%). Momentum indicators are mostly neutral and EUR is likely to trade sideways for today, expected to be between 1.1390 and 1.1445.”

Next 1-3 weeks: “On Monday (07 Feb, spot at 1.1450), we highlighted that overbought shorter-term conditions could lead to a couple of days of consolidation first. We added, ‘as long as 1.1360 is not breached, the recent rally could extend further but EUR has to break the major resistance at 1.1485 before a move to 1.1520 can be expected’. There is no change in our view for now as EUR consolidated for the past couple of days. That said, the shorter-term underlying tone has softened somewhat and EUR has to head higher within these 1 to 2 days or the odds for a break of 1.1485 would diminish quickly.”