EUR/USD bullish above 1.1095 – UOB

The outlook on EUR/USD could shift to bullish from neutral on a close above 1.1095, suggested the FX research team at UOB Group.

Key Quotes

“The clear break of the strong 1.1000 resistance led to a sharp rise to a high of 1.1069. Upward momentum is strong and with no signs of weakness just yet, another leg higher towards the major 1.1090/95 resistance seems likely. At this stage, a sustained break above this level is not expected, at least not for today. On the downside, support is at the ‘breakout’ level of 1.1000 and the 1.0955 low seen earlier yesterday is not expected to come into the picture”.

“The anticipated corrective rebound exceeded our expectation by easily moving above the strong 1.1040 resistance. Upward momentum continues to improve and the undertone for EUR is clearly positive. However, EUR has to break above the major 1.1095 resistance before a sustained rally in the coming weeks can be expected. Overall, the positive undertone would remain intact unless there is a move back below 1.0955 (1.1000 is already a strong short-term support)”.