EUR/USD now looks to 1.0230 – UOB

Further upside could lift EUR/USD to the 1.0230 region, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we expected EUR to ‘retest the 1.0115 level’ and we were of the view that ‘a sustained rise above this level is unlikely’. We did not expect the strong and rapid surge to 1.0197 and the subsequent pullback from the high. While upward momentum has slowed, there is room for EUR to retest the 1.0200 level. For today, a clear break of this level is unlikely. The next resistance is at 1.0230. On the downside, a breach of 1.0070 (minor support is at 1.0100) would indicate the current upward pressure has eased.”

Next 1-3 weeks: “We highlighted yesterday (12 Sep, spot at 1.0060) that EUR is likely to ‘trade with an upward bias’ but ‘any advance is expected to face solid resistance at 1.0180’. The subsequent strong surge that sent EUR to a high of 1.0197 came as a surprise. The breach of the major resistance at 1.0180 suggests EUR is likely to advance further. The next level to watch is at 1.0230. The upside risk is intact as long as EUR does not move below 1.0030 (‘strong support; level was at 0.9960 yesterday).”