EUR/USD: Momentum improves and targets 1.1640 – UOB

FX Strategists at UOB Group still see EUR/USD attempting a move to 1.1640 in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘further gains are not ruled out but the major resistance at 1.1640 is unlikely to come into the picture’. Our view was not wrong as EUR rose to 1.1624 before pulling back. Upward pressure has eased and EUR is unlikely to strengthen much further. For today, EUR is more likely to trade sideways within a range of 1.1570/1.1620.”

Next 1-3 weeks: “There is no change in our view from yesterday (14 Oct, spot at 1.1595). As highlighted, the recent weak phase has ended. The rapid rebound has gained momentum and EUR is likely trade with an upward bias towards 1.1640. Further advance is not ruled out but 1.1640 may not be easy to crack. The upward bias is deemed intact as long as EUR does not move below 1.1540 within these few days.”