EUR/USD stays bid and could test 1.1125 – UOB

Pablo Piovano FXStreet

The pair looks bid at/around the 1.1100 area and it could attempt a move to 1.1125 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR traded between 1.1071 and 1.1108, narrower and higher than our expected sideway-trading range of 1.1055/1.1100. The underlying tone has improved somewhat and this would likely translate into a slow grind higher towards 1.1125. For today, the next level at 1.1150 is unlikely to come into the picture. Support is at 1.1090 followed by 1.1070.”

Next 1-3 weeks: “There is not much to add to add to the update from yesterday (04 Nov, spot at 1.1080). As highlighted, while it is too early to expect a sustained advance, EUR could test the strong 1.1125 resistance. However, the rapid retreat from the NY hour peak of 1.1115 has weakened the underlying tone somewhat. That said, only a break of 1.1035 (‘strong support’ level was at 1.1020 yesterday) would indicate the current upward pressure has eased. Until there is a break of the ‘strong support’ level, another ‘stab’ at 1.1125 is not ruled out just yet.”

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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