EUR/USD keeps the positive bias unchanged, although it still faces strong resistance at 1.2185, suggested FX Strategists at UOB Group.
24-hour view: “Yesterday, we highlighted that EUR ‘could still advance albeit overbought conditions suggest that subsequent major resistance at 1.2185 is probably going out of reach’. We added, ‘there may be a relatively strong resistance at 1.2145’. EUR subsequently advanced to 1.2149 before easing off to trade mostly sideways (low has been 1.2101). While upward momentum has waned, it appears too early to expect a sustained pullback. For today, EUR could edge higher but the main resistance at 1.2185 remains likely out of reach (there may be a minor resistance at 1.2160). Support is at 1.2100 followed by 1.2080.”
Next 1-3 weeks: “There isn’t much to feature to our update from yesterday (29 Apr, spot at 1.2135). As highlighted, the positive introduction EUR that started early this month remains intact. However, insight of the overbought conditions, EUR may find it hard to interrupt the main resistance at 1.2185. On the downside, a breach of 1.2050 (no change in ‘strong support’ level) would indicate that the positive phase has come to an end.”
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