EUR/USD: shrinking bets for a test of 1.1065

FX Strategists at UOB Group note that a potential move to the 1.1060 region in EUR/USD seems to be losing traction.

Key Quotes

24-hour view: “EUR popped to a high of 1.1172 before retreating to end the day slightly lower at 1.1135 (-0.13%). While the pullback from the high lacks momentum, there is scope for EUR to ease to 1.1115 first before stabilization can be expected. For today, the 1.1095 support is unlikely to come under threat. Resistance is at 1.1155 followed by 1.1175.”

Next 1-3 weeks: “EUR popped to a high 1.1172 yesterday (16 Jan), just a few pips below the ‘strong resistance’ of 1.1175. While downward momentum has deteriorated, only a breach of 1.1175 would suggest last Friday’s (10 Jan) low of 1.1083 is a short-term bottom. Meanwhile, the downside risk remains intact even though the prospect for EUR moving towards the major 1.1065 support has diminished considerably. Looking ahead, a breach of 1.1175 would likely lead to a period of sideway-trading in EUR.”

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