FX Strategists at UOB Group noted the recovery in EUR/USD could re-visit the 1.1800 area in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘upward momentum has improved, albeit not by all that much’ and we expected EUR to ‘edge above 1.1770’. Our expectations did not materialize as EUR rose to 1.1764 before easing off. While upward momentum remains lackluster, we continue to see chance for EUR to edge above 1.1770. However, EUR is not expected to challenge the major resistance at 1.1800. Support is 1.1740 followed by 1.1725.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (24 Aug, spot at 1.1745). As highlighted, the current rebound in EUR has scope to extend to 1.1800. At this stage, the odds for a sustained advance above 1.1800 are not high. On the downside, a break of 1.1695 (no change in ‘strong support’ level) would indicate that the current build-up in momentum has eased.”