EUR/USD faces strong resistance around 1.2145 – UOB

FX Strategists at UOB Group stay bullish on the pair, expecting it to meet a tough resistance in the mid-1.2100s.

Key Quotes

24-hour view: “Expectation for sideway trading was wrong as EUR dropped sharply to a low of 1.1946. The decline appears to be running ahead of itself and further sustained weakness seems unlikely for now. That said, it is too early to expect a significant recovery and EUR is more likely to consolidate at these lower levels. Expected range for today; 1.1920/1.2000”.

Next 1-3 weeks: “As highlighted yesterday, the sharp and rapid pull-back from a high of 1.2092 last Friday suggests a quick loss in upward momentum. However, only a clear break of 1.1920 would indicate that the current bullish phase has ended. Until then, another push higher towards 1.2145 is not ruled out but in order to prevent further loss of upward momentum, EUR has to ‘punch’ above 1.2000 within these 1 to 2 days. Positioning wise, the buy level at 1.1970 is hit overnight, stop-loss remains unchanged at 1.1920”.