FX Strategists at UOB Group noted EUR/USD could advance to the 1.1240 region once 1.1190 is cleared.
Key Quotes
24-hour view: “Our view for EUR to consolidate yesterday was incorrect as it rose to 1.1170 before closing on a firm note at 1.1156 (+0.64%). While upward momentum has not improved much, there is room for the advance in EUR to extend above 1.1190 first before easing. The next resistance at 1.1240 is not expected to come under threat. Support is at 1.1130 followed by 1.1100.”
Next 1-3 weeks: “We highlighted yesterday that the risk for EUR has shifted to the upside. We added, ‘a clear break of 1.1140 could lead to EUR strengthening to 1.1190’. EUR subsequently broke above 1.1140 and rose to a high of 1.1170. We continue to hold a positive EUR view and if EUR can break 1.1190, it would increase the chance for further EUR strength to 1.1240. The positive EUR outlook is intact as long as it does not move below 1.1055 (‘strong support’ level was at 1.1000 yesterday). On a shorter-term note, 1.1100 is already a strong support level.”