EUR/USD picks up pace, now eyes 1.1330/70 – UOB

FX Strategists at UOB Group highlighted the upbeat mood in EUR/USD and noted it could visit 1.1330 and 1.1370 in the next weeks.

Key Quotes

24-hour view: “Our view that a ‘short-term top is in place’ was wrong as EUR not only broke above Tuesday’s peak of 1.1212 but also the late December top of 1.1239 (overnight high of 1.1244). While the rally is overbought, solid momentum could continue to carry EUR higher from here. That said, 1.1285 is a major level and is expected to offer solid resistance. Support is at 1.1185 but only a breach of 1.1155 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “We highlighted yesterday (05 Mar, spot at 1.1135) that ‘there is no change to our view even though shorter-term momentum is beginning to wane and unless EUR can move and stay above 1.1190 within these 1 to 2 days, the odds for a move to 1.1239 would diminish quickly’. EUR not only moved above 1.1190 but managed to crack 1.1239 as well (overnight high of 1.1244). Upward momentum is given a strong boost and from here, the next level to focus at is 1.1330 followed by 1.1370. On the downside, the ‘strong support’ has moved higher to 1.1100 from yesterday’s level of 1.1050.”