EUR/USD faces the next resistance at 1.1830 – UOB

FX Strategists at UOB Group noted the next target of relevance in EUR/USD is seen at 1.1830 ahead of 1.1950.

Key Quotes

24-hour view: “We highlighted yesterday that ‘strong and robust momentum suggests further EUR strength is likely but in view of the overbought conditions, EUR may not be able to maintain a toehold above 1.1750’. The subsequent strength in EUR exceeded our expectation as EUR surged to a high of 1.1781 before closing on a strong note at 1.1751 (+0.83%). From here, EUR could continue to strengthen but severely overbought conditions suggest a slower pace of gain and the next major resistance at 1.1830 could be out of reach for today (minor resistance is at 1.1800). Support is at 1.1725 followed by 1.1690.”

Next 1-3 weeks: “We noted yesterday (27 Jul, spot at 1.1685) that ‘the price action clearly indicates that EUR is still strong’ and added, ‘the next level to focus on is at 1.1750 followed by 1.1830’. EUR cracked 1.1750 without much difficulty as it soared to 1.1781 before closing on a strong note at 1.1751 (+0.83%). Severely overbought shorter-term conditions suggest the positive phase that started about 1-1/2 weeks ago could be taking a breather soon. That said, only a break of 1.1630 (‘strong support’ level was at 1.1540 yesterday) would indicate the current strong upward pressure has eased. Until then, EUR could continue to advance towards 1.1830. The next resistance level of note above 1.1830 is at 1.1950.”