FX Strategists at UOB Group noted EUR/USD could now extend the recovery to the 1.1865 level in the near term.
Key Quotes
24-hour view: “Our view for EUR to ‘trade sideways’ yesterday was incorrect as it soared to 1.1856 during NY session. Despite the advance, upward momentum has not improved by all that much. That said, there is room for EUR to test the major support at 1.1865. For today, a sustained rise above this level is unlikely (next resistance is at 1.1910). Support is at 1.1820 followed by 1.1795.”
Next 1-3 weeks: “We have held a positive view in EUR since last Tuesday (24 Aug, spot at 1.1745). In our latest narrative from yesterday (01 Sep, spot at 1.1810), we indicated that ‘shorter-term upward momentum appears to have waned somewhat but the current positive outlook is deemed intact as long as EUR does not move below the ‘strong support’ level at 1.1760’. We added, ‘the next level to focus on is at 1.1865’. While EUR subsequently rose to 1.1856, upward momentum has not improved by much. However, a break of 1.1865 would not be surprising. The next level to focus on above 1.1865 is a rather solid resistance at 1.1910. On the downside, the ‘strong support’ level has moved higher to 1.1775 from 1.1760.”