EUR/USD still targets the 1.1000 region – UOB
Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest EUR/USD remains poised to challenge the key 1.1000 zone in the next few weeks.
24-hour view: “We highlighted yesterday that ‘upward momentum has improved a tad’ and we held the view that EUR ‘could edge above 1.0950’. However, EUR pulled back from 1.0929 to 1.0848 before rebounding to close at 1.0889 (-0.24%). The price actions appear to be part of a consolidation phase and EUR is likely to trade between 1.0855 and 1.0925 today.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (26 Jan, spot at 1.0920). As highlighted, while upward momentum has not improved much, EUR appears poised to head higher toward 1.1000. In view of the current lackluster momentum, any advance is likely to be slow and grinding. The current mild upward pressure is intact as long as EUR stays above 1.0840. Looking ahead, a breach 1.0840 would suggest that EUR could consolidate first before heading higher at a later stage.”