EUR/USD should face strong resistance at 1.2145 – UOB

The pair’s upside is expected to meet tough barrier in the 1.2145 area, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR traded sideways within a range of 1.1930/1.1978 yesterday, narrower than our expected consolidation range of 1.1920/1.1200. The quick bounce from the 1.1930 low is picking up momentum and the rebound has scope to extend higher to 1.2000. At this stage, a sustained move above this level seems unlikely (next resistance is at 1.2030). On the downside, 1.1945 is a strong support ahead of 1.1920”.

Next 1-3 weeks: “EUR dipped to a low of 1.1924 yesterday, just a few pips above the stop-loss for our bullish view at 1.1920. As highlighted yesterday, while upward momentum has eased considerably, another push higher towards 1.2145 is not ruled out just yet. That said, EUR has to move above 1.2000 by end of today or the expected loss of momentum would be enough to indicate that the current bullish outlook has shifted to neutral. Positioning wise, those who are long from 1.1970 should look to exit their position unless NY closing is above 1.2000”.