EUR/USD keeps targeting the 1.1920 level – UOB

FX Strategists at UOB Group noted EUR/USD expects further gains on a close above 1.1920 in the next weeks.

Key Quotes

24-hour view: “EUR popped to a high of 1.1868, dropped to 1.1812 before recovering to end the day at 1.1853 (+0.18%). Upward momentum is beginning to improve and the bias for today is tilted to the upside. A move above 1.1880 would not be surprising but the major resistance at 1.1920 is unlikely to come under threat. All in, only a break of 1.1820 (minor support at 1.1840) would indicate the current mild upward pressure has eased.”

Next 1-3 weeks: “Our latest narrative was from last Friday (13 Nov, spot at 1.1805) wherein EUR is ‘is still in consolidation, likely to trade between 1.1720 and 1.1880’. Upward momentum has improved slightly as EUR approaches the top of the expected range (high of 1.1868 yesterday). A breach of 1.1880 would not be surprising but EUR has to close above the major resistance 1.1920 in order to indicate that it has moved out of its consolidation phase. At this stage, the prospect for such a move is not high but it would continue to increase as long as EUR does not move below 1.1790 within these few days.”