EUR/USD: Upside momentum improves – UOB

FX Strategists at UOB Group noted EUR/USD could now advance to the 1.1835 level in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that EUR ‘could strengthen further’ but the ‘the next major resistance at 1.1835 is likely out of reach for now’. EUR subsequently rose to 1.1809 before trading sideways. While upward momentum has slowed, there is room for EUR to edge higher. However, the major resistance at 1.1835 is still likely out of reach (minor resistance is at 1.1820). Support is at 1.1780 followed by 1.1765.”

Next 1-3 weeks: “Our update from yesterday (30 Aug, spot at 1.1795) still stands. As highlighted, after the strong advance last Friday (27 Aug), upward momentum has improved and we see room for the current EUR strength to extend to 1.1835. Only a break of 1.1735 (no change in ‘strong support’ level from yesterday) would indicate that the current EUR strength has run its course. Looking ahead, the next resistance above 1.1835 is at 1.1865.”