Boost in momentum has increased the likelihood of Euro (EUR) reaching 1.1275, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.
EUR is set to target 1.1275
24-HOUR VIEW: “We expected EUR to ‘strengthen further towards 1.1225’ yesterday. We indicated that ‘support levels are at 1.1165 and 1.1145.’ Our expectation did not turn out, as EUR traded between 1.1150 and 1.1201, closing at 1.1161 (-0.26%). EUR seems to have entered a consolidation phase and is likely to trade in a range of 1.1140/1.1190 today.”
1-3 WEEKS VIEW: “After EUR soared last Friday, we indicated yesterday (26 Aug, spot at 1.1185) that ‘the boost in momentum has increased the likelihood of EUR reaching 1.1275.’ We continue to hold the same view even though overbought short-term conditions could lead to a couple of days of consolidation first. Overall, we will continue to hold a positive EUR view provided that the ‘strong support’ level at 1.1105 (no change in level) is not breached.”
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