Euro: Does the upside bias favour a move towards 1.1250 against US Dollar? – UOB

EUR/USD has scope for further gains as upward momentum strengthens following a sharp rise in the early Asian session, according to United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann. The Euro (EUR) could test resistance at 1.1250 during the day, as long as it remains above 1.1190. For the next 1–3 weeks, the renewed upward momentum points to a possible test of 1.1250, with a move towards 1.1280 potentially following if the pair closes above 1.1250.

Can Euro-Dollar extend gains as upward momentum builds?

"24-HOUR VIEW: Two days ago, EUR briefly rose to 1.1237 and then retreated. When it was at 1.1190 yesterday, we indicated that “the brief advance did not lead to any increase in upward momentum,” and we expected EUR “to trade in a range between 1.1160 and 1.1220.” EUR then traded within a narrower range of 1.1174/1.1206. While EUR closed little changed at 1.1193 (+0.07%), it rose sharply in the early Asian session today. Upward momentum is building, and there is room for EUR to test 1.1250. It is too early to determine whether EUR can break clearly above this level. To keep the momentum going, EUR must not break below 1.1190, with minor support at 1.1215."

"1-3 WEEKS VIEW: Last Friday (30 Oct, spot at 1.1190), we indicated that EUR “could rebound further to 1.1220.” We highlighted that “a close above 1.1220 could lead to a move to 1.1250.” After EUR rose and then dropped back down to a low of 1.1136, we highlighted on Monday (02 Nov, spot at 1.1160) that “the buildup in momentum has eased with the pullback, and a clear break below 1.1135 (‘strong support’ level) would indicate that the shift to a positive EUR view was premature.” EUR rose sharply in the early Asian session today, and the renewed upward momentum suggests it could test 1.1250. It must close above this level before a move to 1.1280 is likely. On the downside, the ‘strong support’ level is now at 1.1160."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)