FX Strategists at UOB Group noted the upside momentum in EUR/USD could extend to the 1.1910 level in the next weeks.
Key Quotes
24-hour view: “We expected EUR to strengthen last Friday but we were of the view that ‘the next major resistance at 1.1910 could be out of reach’. Our view was not wrong as EUR popped to a high of 1.1908 before easing off. Upward momentum has eased somewhat and this coupled with overbought conditions suggests that EUR is unlikely to strengthen much further. For today, EUR is more likely to trade sideways between 1.1865 and 1.1910.”
Next 1-3 weeks: “We highlighted last Friday (03 Sep, spot at 1.1875) that EUR strength is still intact and the next level to focus on is a solid resistance at 1.1910. EUR subsequently rose to within a couple of pips of 1.1910 (high of 1.1908) before easing off to close a tad higher at 1.1882 (+0.08%). Overbought shorter-term conditions could lead to a couple of days of consolidation first but as long as 1.1830 (‘strong support’ level was at 1.1800 last Friday) is not breached, a clear break of 1.1910 would not be surprising. That said, the prospect for the current EUR strength to extend to 1.1970 is not high for now.”
