In opinion of FX Strategists at UOB Group, the current upside momentum carries the potential to push EUR/USD to the 1.1080 zone in the short-term horizon.
24-hour view: “EUR traded in a choppy manner yesterday before closing higher at 1.1032 (+0.74%). The underlying tone has firmed and EUR could edge higher from here. That said, a break of the major resistance at 1.1080 appears unlikely. Support is at 1.1005 followed by 1.0980.”
Next 1-3 weeks: “We have expected EUR to trade sideways since the start of the week. After trading sideways for several days, EUR is approaching the top of our expected range of 1.0870/1.1080. Shorter-term upward momentum has improved somewhat and EUR could rise above 1.1080. Looking ahead, EUR has to break 1.1120 before a sustained advance is likely. At this stage, the chance for EUR to break 1.1120 is not high but it would remain intact as long as EUR does not move below the ‘strong support’ level, currently at 1.0920.”
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