In opinion of FX Strategists at UOB Group, a breakout of 1.0925 should allow EUR/USD to attempt a move to 1.0980 in the near-term.
24-hour view: “We highlighted yesterday that EUR ‘could edge above the strong 1.0900 resistance but 1.0925 is unlikely to come into the picture’. EUR subsequently rose to 1.0908 before easing off quickly. While upward pressure has eased, it is too early to expect a significant pullback. For today, could try to move above 1.0900 again but any advance is still unlikely to move beyond 1.0925. Support is at 1.0840 followed by 1.0820.”
Next 1-3 weeks: “We indicated on Monday (24 Feb, spot at 1.0835) that the weak phase in EUR that started in early February has ended. Our view was that EUR has moved into a consolidation phase and is expected to trade within a relatively broad 1.0770/1.0900 range. EUR rose to 1.0890 yesterday (25 Feb) and upward momentum is beginning to improve. For now, we continue to hold the same view but if EUR were to register a NY closing above 1.0925, it would indicate the start of a stronger rebound towards 1.0980. The prospect for such a scenario is not high for now but it would continue to increase if EUR can hold above 1.0805 within these few days.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.