EUR/USD: Upside risk remains intact – UOB

UOB Group’s FX Strategists still remain constructive on EUR/USD as long as it trades above 1.2045.

Key Quotes

24-hour view: “We expected EUR to ‘edge higher’ yesterday but we were of the view ‘a clear break of the major resistance at 1.2150 appears unlikely’. EUR subsequently rose to 1.2144 before easing off to close little changed at 1.2127 (+0.07%). Momentum indicators are mostly flat and EUR is likely to trade sideways. Expected range for today, 1.2100/1.2150.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (15 Feb, spot at 1.2120). As highlighted, upward momentum has slowed a tad but the upside risk remains intact. Only a break of 1.2045 (no change in ‘strong support’ level) would indicate that EUR is not ready to move above 1.2150. Looking ahead, the next resistance above 1.2150 is at 1.2180.”