The Euro (EUR) could move above 1.1200 but is unlikely to reach 1.1225. However, a boost in momentum suggests a higher probability of EUR reaching 1.1275 in the longer term, according to UOB Group FX strategists Quek Ser Leang and others.
Bulls may test the 1.1200 level in the short term
24-HOUR VIEW: "Yesterday, we suggested that EUR seemed to be in a consolidation phase and expected it to trade within the range of 1.1140 to 1.1190. Although our view was accurate, EUR traded in a narrower range of 1.1150 to 1.1190, closing firmly at 1.1184 (+0.21%). While upward momentum has increased slightly, EUR may edge above 1.1200 today, though the next resistance at 1.1225 is likely to be out of reach. Support levels are at 1.1165 and 1.1145."
1-3 WEEKS VIEW: "Following EUR's surge last Friday, we noted on Monday (26 Aug, spot at 1.1185) that the increased momentum raised the likelihood of EUR reaching 1.1275. We maintain this outlook, provided the ‘strong support’ at 1.1105 remains intact."
