EUR/USD: Extra gains still likely above 1.1965 – UOB

FX Strategists at UOB Group noted EUR/USD faces a probable move to levels aove 1.2100 while above the 1.1965 level.

Key Quotes

24-hour view: “Yesterday, we noted that ‘upward momentum has waned considerably’ and we expected EUR to consolidate and ‘trade sideways between 1.2010 and 1.2065’. EUR subsequently dipped to 1.1997 before rebounding to close unchanged at 1.2033 (high has been 1.2043). The underlying tone has improved somewhat and this could lead to EUR edging higher to 1.2060. Barring a sudden surge in momentum, EUR is unlikely to move above the Tuesday’s high near 1.2080. Support is at 1.2020 followed by 1.2000.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (21 Apr, spot at 1.2035). As highlighted, the positive phase in EUR that started 2 weeks ago is still intact. Overbought shorter-term conditions could lead to a couple of days of consolidation first but as long as EUR does not move below 1.1965 (no change in ‘strong support’ level), there is still scope for EUR to advance to 1.2115.”