EUR/USD bullish on a close above 1.1020/25 – UOB

FX Strategists at UOB Group noted the pair’s outlook should turn bullish on a close above the 1.1010/25 band.

Key Quotes

“While the support at 1.0890 held as expected (low of 1.0920), the ease of which the resistances at 1.0955 and 1.0980 were taken out were unexpected (high has been

1.0989). Improved upward momentum coupled with the solid daily closing suggests further upward pressure towards last week’s peak near 1.1022. An intraday move above this level is not ruled but the next resistance near 1.1050 is unlikely to come under threat”.

“The rebound from last Friday’s 1.0838 low has been more resilient than expected. The rather strong resistances at 1.0950 and 1.0980 were taken out without much difficulty and now EUR is facing the 1.1022 high seen last Monday (08 May). A NY closing above this level would indicate that EUR has moved into a bullish phase again with an immediate target of 1.1100. This scenario would not be surprising as long as EUR can hold above 1.0920 within these 1 to 2 days”.