EUR/USD eyes 1.20, remains bullish – UOB

FX Strategists at UOB Group keep their bullish outlook on the pair, which now targets the 1.20 area in the next 1-3 weeks.

Key Quotes

“EUR traded sideways as expected (registered and ‘inside day’ yesterday) albeit at a narrower range than anticipated. The underlying tone is positive and EUR is expected to grind higher towards Wednesday’s high of 1.1909. A move above this level would not be surprising but the next resistance at 1.1940 is unlikely to come into the picture. Support is at 1.1845 followed by 1.1810”.

“We indicated yesterday that unless EUR can ‘punch’ above 1.1845 within these few days, the odds for further upward extension would diminish. EUR not only took out this level but also the strong resistances at 1.1875 and 1.1900 (overnight high of 1.1909). Despite the swift pull-back from the high, the bullish phase that started on 19 Jul is still intact. The next level to focus on is technically at 1.2000 but based on the current extreme over-stretched conditions, this level could be a bridge too far. On the downside, support is at 1.1810 followed by the stop-loss at 1.1770 (adjusted higher from 1.1720)”.