Sustained gains in EUR / USD await once the 1.2200 level is broken, according to UOB Group currency strategists.
Key Comments:
24 hour view: “Yesterday, we expected EUR / USD to ‘move sideways between 1.2125 and 1.2180’. However, EUR / USD briefly fell to 1.2105 before bouncing sharply to end the day at 1.2164 (+ 0.12%). Momentum Bullish has improved a bit and there is room for EUR / USD to test main resistance at 1.2200. Next resistance at 1.2230 is unlikely to enter the scene. Support is at 1.2145 followed by 1.2120 “.
Next 1-3 weeks: “On Monday (Feb 22, EUR / USD at 1.2125), we highlighted that the outlook was mixed and we expected EUR / USD to trade between 1.2050 and 1.2200 over a period of time. Short-term momentum has improved, but EUR / USD has to close above 1.2200 before a sustained advance can be expected (next resistance is at 1.2230). The outlook for a sustained advance above 1.2200 is not high, but would remain intact as long as it does not fall below 1.2080 ”.
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