EUR/USD scope for a test of 1.1615 – UOB

FX Strategists at UOB Group remain bullish on the pair, allowing a potential visit to the 1.1615 area in the next weeks.

Key Quotes

“The anticipated EUR strength exceeded our expectation by easily taking several strong resistances to hit a high of 1.1583. The up-move is over-extended and while a retest of 1.1580/85 is not ruled out, a sustained move above this level is not expected. The next resistance at the 2016 high of 1.1615 is unlikely to come into the picture, at least not for today. Support is at 1.1525 but only a dip below 1.1500 would indicate that the upward pressure has eased”.

“The clear break above the top end of our expected 1.1380/1.1550 consolidation range indicates that EUR has moved into a bullish phase again. However, the sharp rally is over-extended and any further up-move is expected to face solid resistance at the 2016 peak of 1.1615 (next resistance is at 1.1665 followed by the August 2015 high near 1.1710). In view of the overbought conditions, those looking to enter long may like to wait for a dip to 1.1500. Stop-loss is place at 1.1445”.