EUR/USD faces extra gains above 1.2180 – UOB

Extra gains seen in EUR/USD above the 1.2180 levels, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR rose to 1.2149 last Friday before closing on a firm note at 1.2140 (+0.51%). Further advance is not ruled out but last week’s high at 1.2180 is unlikely to come into the picture (1.2160 is already quite a strong level). On the downside, a breach of 1.2100 (minor support is at 1.2120) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Last Monday (10 May, spot at 1.2165), we highlighted that ‘while EUR could move above 1.2200, the prospect for a rise to 1.2240 is not that high for now’. Since then, EUR has not been able to make much headway on the upside. Upward momentum is lackluster and EUR has to close above the major resistance at 1.2180 before a sustained advance can be expected. The prospect for EUR to close above 1.2180 is not high for now but it would remain intact as long as it does not move below 1.2065 within these several days.”