EUR/USD: Scope for a test of 1.1190 – UOB

FX Strategists at UOB Group now suggest EUR/USD could advance to 1.1190 once 1.1140 is cleared.

Key Quotes

24-hour view: “The strong surge in EUR to a high of 1.1136 and the subsequent strong closing at 1.1085 (+0.97%) came as a surprise (we were expecting sideway-trading). The rapid rise appears to be running ahead of itself and EUR is unlikely to strengthen much further. For today, EUR is more likely to consolidate at these higher levels, expected to be between 1.1050 and 1.1140.”

Next 1-3 weeks: “We highlighted on Monday (28 Mar, spot at 1.0980) that downward momentum is beginning to build but EUR ‘has to close below 1.0950 before a sustained decline is likely’. EUR subsequently dropped to a low of 1.0943 but did not close below 1.0950. Yesterday (29 Mar), EUR jumped to a high of 1.1136 before closing on a strong note at 1.1085 (+0.97%). The risk has shifted to the upside and a clear break of 1.1140 could lead to EUR strengthening to 1.1190. The upside risk is intact as long as EUR does not move below the ‘strong support’ level (currently at 1.1000) within these few days.”