EUR/USD firmer, now looks to 1.2200 – UOB

UOB Group’s FX Strategists mentioned EUR/USD should now try to go to the 1.2200 degree in the subsequent weeks.

Key Quotes
24-hour view: “Our expectation for EUR to consolidate used to be incorrect as it staged a unexpected and sharp rally and cracked the primary resistance at 1.2011 (high in Sep). The breach of the key resistance resulted in speedy surge to a excessive of 1.2076. While the sharp rally is overbought, sturdy momentum suggests similarly EUR electricity is likely. The subsequent resistance is at 1.2100 accompanied via 1.2130. On the downside, the ‘break-out’ degree close to 1.2010 is appearing as a stable guide now (minor aid is at 1.2035).”

Next 1-3 weeks: ”After EUR failed to destroy the key 1.2011 degree and retreated sharply from excessive of 1.2003, we indicated the previous day (01 Dec, spot at 1.1935) that ‘odds for in addition EUR energy have diminished except EUR can pass and remain above 1.1980 within these 1 to two days’. That said, we did pretty count on the manner through which EUR became around, blast previous 1.2011 and rocketed to a excessive of 1.2076, Note that EUR closed up with the aid of a whopping +1.19% (1.2070), its largest 1-day obtain seeing that March. The clear break-out suggests that EUR has moved into its subsequent up-leg. Further EUR energy is possibly in particular when there are few resistance ranges of note. From here, the stage to focal point on is at 1.2200. On the downside, the ‘strong support’ has moved greater to 1.1950 from the preceding stage of 1.1900. On a shorter-term note, the ‘break-out’ degree close to 1.2010 is already a strong support.”

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