EUR/USD now targets 1.1050 – UOB

The pair could reach the 1.1050/1.1120 region in the near term, according to FX Strategists at UOB Group.

Key Quotes

“EUR hit a high of 1.1023 early this morning after Macron won the French presidential election. The up-move was however short-lived and the rapid pullback from the high suggests that the recent strong upward pressure has eased. However, it is still too early to expect a significant pullback. This pair is more likely to consolidate its gains and trade sideways even though the immediate bias is for a probe lower towards the bottom of the expected 1.0965/1.1030 consolidation range”.

“While EUR finally broke above 1.1100 (target first indicated on 26 Apr), the lack of acceleration higher after the breach came as a surprise (high of 1.1022 early this morning). This level is a declining trend-line on the weekly chart and a break has a rather bullish connotation. For now, we will continue to hold a bullish stance until the trailing stop-loss at 1.0900 (unchanged) is taken out”.