Still room for a move above 1.1500 – UOB

In the opinion of the UOB Group’s currency strategists, the EUR/USD could move to 1.1520 once the 1.1485 level is broken.

Key comments

24 hour view: “Yesterday we expected EUR/USD to ‘trade sideways between 1.1390 ​​and 1.1445’. Our view on consolidation was not wrong even though EUR/USD moved within a narrower range than expected (1.1401/ 1.1447).The consolidation in the past few days seems to be coming to an end and the risk to the upside is higher.A clear break of 1.1455 could lead to a quick rally towards the major resistance at 1.1485.That being said, if EUR/USD breaks support at 1.1390 ​​could trigger a drop to 1.1360.”

Next 1-3 weeks: “On Monday (Feb 7, EUR/USD at 1.1450), we highlighted that short-term overbought conditions could lead to a couple of days of consolidation first. Adding that ‘as long as 1.1360 is not broken, the recent recovery could extend further, but EUR/USD has to break major resistance at 1.1485 before a move to 1.1520 can be expected’ In line with our expectations, EUR/USD has consolidated in recent days. Consolidation phase appears to be coming to an end and a break of 1.1455 could lead to a quick rally to 1.1485 At the moment the chance of a sustained rally above 1.1485 is not high but it would remain intact as long as the price is not broken. ‘strong support’ at 1.1360”.

Source: Fx Street

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