EUR/USD upside pressure intact – UOB

FX Strategists at UOB Group noted the pair’s outlook should shift to bullish from the current neutral stance on a close above the 1.1900 handle.

Key Quotes

24-hour view: “In line with expectation, EUR extended its gains but the up-move was thwarted by the strong 1.1860 resistance (high has been 1.1855). The immediate pressure remains on the upside but any move above 1.1860 is unlikely to have enough momentum to threaten the next resistance at 1.1900. Support is at 1.1830 but only a move back below 1.1800 would indicate that a short-term top is in place”.

Next 1-3 weeks: “EUR continues to respect the major 1.1860 resistance (overnight high of 1.1855). As highlighted yesterday, the improved undertone suggests that a move above 1.1860 would not be surprising in the coming days even though only a daily closing above 1.1900 would indicate that EUR has moved into a bullish phase. The odds for such a move are not high at this stage but would continue to improve as long as the key short-term support at 1.1760 is intact (prior key support was at 1.1730)”.