Euro: Bias favours gains towards 1.1250 against US Dollar – UOB

Resistance at 1.1250 could be tested by EUR/USD intraday as long as the pair stays above 1.1190, according to United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann. They note that upward momentum is strengthening following a sharp rise in early Asian trading. For the next 1–3 weeks, the renewed momentum points to a possible advance towards 1.1250, with 1.1280 potentially in reach if the pair closes above 1.1250.

Euro-Dollar Gains Upward Momentum

"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.)