EUR/USD outlook shifted to bullish – UOB

FX Strategists at UOB Group now expect the pair to face strong resistance in the mid-1.2100s.

Key Quotes

“After trading sideways for a week, EUR broke above the top of our expected 1.1820/1.1980 consolidation range as market ignored ECB’s concern on foreign exchange and sent EUR to an overnight high of 1.2059”.

“As highlighted in recent updates, a break out of the expected consolidation range would indicate the start of a directional move. In other words, the outlook for EUR has shifted from neutral to bullish and the immediate target is at 1.2145 (next resistance at 1.2200). 1.2145 is a rather strong level and may not be easy to crack”.

“On the downside, support is at 1.1970 but only a move below 1.1920 (stop-loss level) would indicate that our bullish expectation is wrong. Positioning wise, those looking to buy may like to wait for a dip to 1.1970/75 (with a stop-loss at 1.1920)”.