In light of recent price action, the EUR/USD it could now advance to the 1.1180 region in the coming weeks, currency strategists at UOB Group have suggested.
24 hour outlook: “Yesterday we signaled that the underlying tone had firmed and we expected the EUR to head higher. While our view on a higher euro turned out to be correct, we did not expect the ease with which it broke through resistance at 1.1080 and the subsequent rapid rally towards 1.1137.The retracement from the top has dented the upside momentum and the EUR is unlikely to strengthen much further.At the moment, it is more likely to trade between 1.1055 and 1.1140 today.”
Next 1-3 weeks: “Yesterday (March 17, pair at 1.1030), we highlighted that the short-term bullish momentum had improved a bit and the EUR could rise above 1.1080. And we added that going forward, the euro had to break 1.1120 sooner.” that a sustained advance was likely.While our view was not wrong, we did not expect the euro to be able to break both 1.1080 and 1.1120 so quickly (making a high of 1.1137).The rapid improvement in momentum suggests that EUR could advance to 1.1180, possibly 1.1200. Support is at 1.1055, but only a break of 1.1025 (the ‘strong support’ level was at 1.0920 yesterday) would indicate that the current pressure to the upside has eased.”
Source: Fx Street
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