EUR/USD scope for a test of 1.0850 – UOB

FX Strategists at UOB Group argued there is still room for the pair to attempt a visit to the mid-1.0800s in the next weeks.

Key Quotes

“EUR rebounded after touching a low of 1.0705/10 but the recovery is lacking in momentum. However, the immediate bias is tilted to the upside but at this stage, any further upmove is expected to face stiff resistance near the 1.0795/00 high seen on Monday”.

“EUR traded in a relatively narrow range yesterday and there is no change to the view wherein we expect the ‘post-Italian referendum’ up-move to extend higher towards 1.0850. At this stage, a sustained move above 1.0850 seems unlikely. Only a move below 1.0640 would indicate that the short-term upward pressure has eased”.