EUR / USD: Bullish momentum could extend to 1.2150

Currency strategists at UOB Group have noted that the uptrend of the currency EUR / USD could revisit the 1.2150 region In the next weeks.

Key Comments:

24 hour view: “The strong rise in EUR / USD that sent it higher, coupled with the subsequent strong daily close at 1.2117 (+ 0.57%), was a surprise. While there is overbought, the move offers room to move above 1.2150, but the next major resistance at 1.2180 is probably out of reach for now. Support is at 1.2090 followed by 1.2070 “.

Next 1-3 weeks: “We observed two days ago (Feb 8, EUR / USD at 1.2045) that the recent ‘weak phase has run its course’ and we expected EUR / USD to ‘trade between 1.1950 and 1.2150’. While our opinion was not wrong, the sharp and rapid manner in which the EUR / USD is moving towards 1.2150 has come as a surprise (previous day’s high of 1.2121). The rapid advance appears to be ahead of itself, but the much improved bullish momentum suggests that the current strength of the EUR / USD could break the 1.2150 level and extend to 1.2180. Bullish pressure is considered intact as long as EUR / USD does not move below the ‘strong support’ level of 1.2045 “.

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