EUR/USD: Technical target for EUR is 1.0530 – UOB Group

Outlook for Euro (EUR) vs US Dollar (USD) is positive, with a technical target of 1.0530. In the longer run, scope for EUR to test 1.0495; the major resistance at 1.0530 is unlikely to come under threat, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Outlook for EUR is positive

24-HOUR VIEW: "Two days ago, EUR rose to 1.0429 and then pulled back. Yesterday, when EUR was at 1.0385, we highlighted that 'there is a chance for EUR to retest the 1.0430 level before a more sustained pullback is likely.' We added, EUR 'is unlikely to break above the major resistance at 1.0450.' In late Asian trade, EUR rose to 1.0439 before pulling back. During the late NY session, EUR surged and broke above 1.0450, reaching a high of 1.0466. The rapid rise appears to be overdone, but there is scope for EUR to test 1.0495. The major resistance at 1.0530 is unlikely to come under threat. Support is at 1.0430; a breach of 1.0400 would indicate that the current upward pressure has eased."

1-3 WEEKS VIEW: "Last Wednesday (05 Feb, spot at 1.0375), we indicated that 'the outlook for EUR is unclear, and it could trade in a broad range of 1.0250/1.0490.' As we tracked the price action, we indicated on Tuesday (11 Feb, spot at 1.0305) that 'the outlook remains unclear, but the price movements are likely to stay within a narrower 1.0250/1.0450 range for now.' Yesterday (Thursday), EUR soared and broke decisively above 1.0450. Given the strong surge in momentum, we are revising our EUR outlook to positive, with a technical target of 1.0530. We will maintain the same outlook provided that 1.0365 (‘strong support’ level) is not breached."