EUR/USD still targets the 1.2200 level – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted the positive outlook for EUR/USD, which continues to target the 1.2200 level.

Key Quotes

24-hour view; “We expected EUR to ‘edge downwards within a lower range of 1.2090/1.2160’ yesterday and we were of the view ‘a sustained decline below 1.2090 is not expected’. EUR subsequently dipped to a low of 1.2077 before rebounding quickly to an overnight high of 1.2166. The current movement is still viewed as part of a consolidation phase. That said, the weakened underlying tone suggests EUR is likely to trade within a lower range of 1.2065/1.2150.”

Next 1-3 weeks: “We have held a positive view in EUR since late last month. In our latest narrative from last Wednesday (02 Dec, spot at 1.2065), we highlighted that EUR ‘has moved into its next up-leg; focus is at 1.2200’. EUR rose to a high of 1.2177 on Friday and shorter-term overbought conditions could lead to a few days of consolidation first. As long as 1.2040 (‘strong support’ level previously at 1.2010) is intact, there is still chance for EUR to move to 1.2200.”

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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