UOB Group currency strategists now see EUR / USD targeting the 1.2115 level in the short term.
Key Comments:
24 hour view: “We expected the EUR to ‘advance further to 1.2065’ yesterday, but we are of the opinion that ‘next resistance at 1.2115 is unlikely to enter the picture.’ Subsequently, the EUR / USD rose to 1.2079 before rapidly falling to end the day unchanged at 1.2033. The bullish momentum has diminished considerably and the current move is considered part of a consolidation phase. In other words, the EUR / USD is likely to move sideways today, and it is expected to be between 1.2010 and 1.2065 ”.
Next 1-3 weeks: “We continue to hold the same opinion as yesterday (April 20, EUR / USD at 1.2035). As highlighted, the positive phase in EUR / USD that started 2 weeks ago received a boost and the next level to focus on is 1.2115. Subsequently, the EUR / USD rose to 1.2079 before reversing. The positive phase in EUR / USD is considered intact as long as it does not move below 1.1965 (no change at the ‘strong support’ level). Meanwhile, short-term conditions are overbought and this could lead to a couple of days of consolidation first. “
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