EUR/USD further gains not ruled out – UOB

FX Strategists at UOB Group have not ruled out extra gains in spot in the next 1-3 weeks.

Key Quotes

“Despite our reservation about the overbought conditions, the ongoing mess in White House gave EUR a fillip and sent it soaring above the strong 1.1800 resistance (overnight high of 1.1845)”.

“While still clearly overbought, the strong daily closing yesterday could lead to further gains towards 1.1875 in the coming days (1.1875 is the low in June 2010, visible on the weekly chart)”.

“Above this level, the focus would shift to the ‘round number’ level of 1.2000. Stop loss is adjusted higher to 1.1720 from 1.1630 previously. Positioning wise, we have suggested 1.1490 as an entry level (see update on 20 Jul) and 1.1660 as an exit level for half of long position”.

“The exit level for remaining long at 1.1800 was triggered yesterday resulted in a gain of +2.09% in about two weeks”.