EUR/USD: A potential move to 1.1800 remains on the cards – UOB

EUR/USD could still re-visit the 1.1800 area in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘while upward momentum remains lackluster, we continue to see chance for EUR to edge above 1.1770’. EUR subsequently traded sideways before popping above 1.1770 during NY session (high of 1.1774). Upward momentum has improved a tad and while the bias is still on upside, a break of the major resistance at 1.1800 appears unlikely. Support is at 1.1745 followed by 1.1730.”

Next 1-3 weeks: “Two days ago (24 Aug, spot at 1.1745), we highlighted that ‘the rebound in EUR has scope to extend to 1.1800’. We added, ‘at this stage, the odds for a sustained advance above 1.1800 are not high’. There is no change in our view even though upward momentum has improved. On the downside, a break of 1.1705 (‘strong support’ level previously at 1.1690) would indicate that the current upward pressure has eased. Looking ahead, the next resistance above 1.1800 is at 1.1835.”