EUR/USD: Bias still tilted to the upside – UOB

FX Strategists at UOB Group noted EUR/USD could edge higher in the next weeks.

Key Quotes

24-hour view: “Last Friday, we expected EUR to ‘drift lower within a lower trading range of 1.1790/1.1850’. EUR subsequently dropped to 1.1785 before rebounding to a high of 1.1864 during late NY hours. The rebound appears to have scope to extend higher but a break of 1.1880 is unlikely (next resistance is at 1.1900). Support is at 1.1820 followed by 1.1800.”

Next 1-3 weeks: “We have the same view since last Wednesday (21 Oct, spot at 1.1825) wherein the bias for EUR ‘is titled to the upside but the major resistance at 1.1900 may not come into the picture so soon’. Shorter-term momentum still appears positive and we continue to see chance for EUR to move to 1.1900. At this stage, the prospect for a sustained advance above this level is not high. On the downside, a break of 1.1770 (no change in ‘strong support’ level) would indicate the current mild upward pressure has eased.”