EUR/USD firmer, now looks to 1.2200 – UOB
|UOB Group’s FX Strategists noted EUR/USD could now attempt to visit the 1.2200 level in the next weeks.
Key Quotes
24-hour view: “Our expectation for EUR to consolidate was wrong as it staged a sudden and sharp rally and cracked the major resistance at 1.2011 (high in Sep). The breach of the key resistance resulted in rapid surge to a high of 1.2076. While the sharp rally is overbought, robust momentum suggests further EUR strength is likely. The next resistance is at 1.2100 followed by 1.2130. On the downside, the ‘break-out’ level near 1.2010 is acting as a solid support now (minor support is at 1.2035).”
Next 1-3 weeks: ”After EUR failed to break the key 1.2011 level and retreated sharply from high of 1.2003, we indicated yesterday (01 Dec, spot at 1.1935) that ‘odds for further EUR strength have diminished unless EUR can move and stay above 1.1980 within these 1 to 2 days’. That said, we did quite expect the manner by which EUR turned around, blast past 1.2011 and rocketed to a high of 1.2076, Note that EUR closed up by a whopping +1.19% (1.2070), its biggest 1-day gain since March. The clear break-out indicates that EUR has moved into its next up-leg. Further EUR strength is likely especially when there are few resistance levels of note. From here, the level to focus on is at 1.2200. On the downside, the ‘strong support’ has moved higher to 1.1950 from the previous level of 1.1900. On a shorter-term note, the ‘break-out’ level near 1.2010 is already a solid support.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.