EUR/USD still seen edging higher to 1.1410 – UOB

FX Strategists at UOB Group remain of the view that EUR/USD could advance past the 1.1400 barrier in the next weeks.

Key Quotes

24-hour view: “EUR traded between 1.1293 and 1.1347 yesterday, narrower than our expected sideway-trading range of 1.1290/1.1370. The underlying tone appears to have weakened somewhat and EUR is likely to drift to 1.1280. For today, a clear break of this level is unlikely and the strong support at 1.1240 is not expected to come under threat. On the upside, a breach of 1.1350 (minor resistance is at 1.1330) would indicate that the current mild downward pressure has eased.”

Next 1-3 weeks: “Our view from Wednesday (01 Dec, spot at 1.1335) still stands. As highlighted, EUR is likely to trade with an upward bias towards 1.1410.  As upward momentum has not improved by much, a sustained rise above 1.1410 is unlikely. On the downside, a breach of 1.1240 (no change in ‘strong support’ level from yesterday) would indicate that EUR is not ready to head towards 1.1410.”