EUR/USD: Upside bias remains unchanged – UOB

EUR/USD might move to the 1.1240 zone, according to currency strategists at UOB Group, if the 1.1190 level is passed first.

Key Quotes

View from the 24-hour period: "Our expectation that the EUR would stabilize yesterday was erroneous, as the currency climbed to 1.1170 before finishing strong at 1.1156 (+0.64 percent). However, despite the fact that the rising momentum has not much improved, there is still opportunity for the EUR to extend over 1.1190 initially before relaxing. It is not predicted that the next resistance level at 1.1240 will be challenged. Support is located at 1.1130, with 1.1100 as a close second."

"We noted yesterday that the risk for the EUR has switched to the upside, and we expect this to continue in the next 1-3 weeks." It was also said that "an unambiguous breach of 1.1140 might result in EUR rising to 1.1190." In the following days, the EUR broke above the 1.1140 level and soared to a high of 1.1170. We have a bullish stance on the euro, and if the currency can break over the resistance level of 1.1190, it increases the likelihood of additional EUR gains to 1.1240. The optimistic EUR outlook remains intact as long as the currency does not fall below 1.1055 (the previous day's'strong support' barrier was at 1.1000). On a more immediate basis, the level of 1.1100 is already a significant support level."