EUR/USD keeps the constructive outlook near-term – UOB

FX Strategists at UOB Group note EUR/USD could advance to the 1.2150/80 area in the next weeks.

Key Quotes

24-hour view: “EUR dropped to 1.2080 last Friday before rebounding strongly to end the day little changed at 1.2118 (-0.08%). The underlying tone has firmed somewhat but while there is chance for EUR to edge higher, a clear break of the major resistance at 1.2150 appears unlikely (minor resistance is at 1.2135). Support is at 1.2100 followed by 1.2080.”

Next 1-3 weeks: “We noted last Wednesday (10 Feb, spot at 1.2115) that ‘vastly improved upward momentum suggests current EUR strength could break 1.2150 and extend to 1.2180’. EUR subsequently traded in a quiet manner and upward momentum has slowed a tad. That said, the upside risk remains intact and only a break of 1.2045 (no change in ‘strong support’ level) would indicate that EUR is not ready to move above 1.2150.”