EUR/USD: Further gains could retest 1.0785 near term – UOB

Pablo Piovano FXStreet

In the opinion of UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang, extra upside in EUR/USD is expected to clear the 1.0785 level in the next few weeks.

Key Quotes

24-hour view: “We expected EUR to ‘trade between 1.0700 and 1.0760’ yesterday. However, EUR edged to a high of 1.0776 before closing at 1.0755 (+0.20%). Upward momentum has improved a tad and EUR is likely to trade with an upward bias. That said, it remains to be seen if EUR can maintain a foothold above the major resistance at 1.0785 (there is another resistance at 1.0820). Support is at 1.0735, followed by 1.0700.”

Next 1-3 weeks: “Our update from Tuesday (10 Jan, spot at 1.0730) still stands. As highlighted, the ease with which EUR took out 1.0735 earlier this week suggests it is likely to take a crack at another strong resistance at 1.0785. The upside risk is intact as long as EUR stays above 1.0665 (‘strong support’ level was at 1.0650 yesterday). Looking ahead, a sustained breach of 1.0785 will shift the focus to 1.0900.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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