EUR/USD: Upward momentum improves – UOB

According to FX Strategists at UOB Group, EUR/USD needs to surpass 1.1920 to allow for extra gains.

Key Quotes

24-hour view: “We highlighted yesterday that EUR ‘could move above 1.1880 but the major resistance at 1.1920 is unlikely to come under threat’. Our view was not wrong as EUR retreated after touching a high of 1.1893. Upward momentum has waned considerably and the risk for EUR to move to 1.1920 from here is low. Overall, EUR is more likely to consolidate and trade between 1.1830 and 1.1895.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (17 Nov, spot at 1.1860). As highlighted, upward momentum has improved slightly but EUR has to close above 1.1920 in order to indicate that it has moved out of its consolidation phase. Looking forward, the next resistance above 1.1920 is at 1.1970 (followed by the year-to-date high at 1.2011). The current slightly positive outlook is deemed as intact as long as EUR does not move below 1.1790 (no change in ‘strong support’ level).”