The currency strategists of UOB Group point out that the pair EUR / USD will keep trying to reach the 1.2200 zone as long as it is trading above 1.2040 In the next weeks.
24 hour perspective: “Yesterday we expected the EUR to consolidate within a lower range of 1.2065 / 1.2150. Subsequently, the euro traded stealthily and within a much narrower margin than expected (1.2094 / 1.2133) before closing practically unchanged at 1.2101 (-0.06%). The quiet price actions offer no new clues and further consolidation would not be surprising. Expected range for today, 1.2075 / 1.2145“.
Next 1-3 weeks: “Two days ago (Dec. 7, even at 1.2125), we highlighted that short-term overbought conditions could lead to a few days of consolidation first. We add, as long as 1.2040 is intact, there is still a chance that the EUR will move to 1.2200. While there is no change in our opinion for now, the euro could not afford to swing around the current level or the loss of momentum would lessen the possibility of another push up to 1.2200. Conversely, a break of 1.2040 (no change in the strong support level) would indicate that the positive phase in the EUR that started about 2 weeks ago is over. “
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