EUR/USD sticks to the bullish view – UOB

The bullish stance on the pair remains well in place for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR traded between 1.2221 and 1.2306 yesterday, wider than our expected 1.2220/1.2290 consolidation range. The strong daily close has shifted the immediate pressure to the upside and from here, EUR has scope to move above last week’s peak near 1.2320/25. At this stage, a sustained move above the next resistance at 1.2355 seems unlikely. Support is 1.2270 followed by 1.2240”.

Next 1-3 weeks: “While we have been bullish EUR since last Monday, we were concerned with the loss of momentum as EUR traded sideways over the past several days. In order to revive the current flagging momentum, EUR has to stage a clear push above last week’s top near 1.2325 within these 1 to 2 days. A clear break above this level would signal the next leg higher towards the revised ‘target’ of 1.2440. On the downside, support is at 1.2240 but only a break of 1.2210 (‘stop-loss’ level adjusted higher from 1.2150) would indicate that an interim top is in place”.