FX Strategists at UOB Group mentioned EUR/USD is viewed association and is predicted to aspect greater in the subsequent weeks.
24-hour view: “Yesterday, we held the view that ‘there is room for EUR to take a look at 1.1955 first earlier than a pullback can be expected’. Our expectation did no longer pretty flip out as EUR retreated after touching a excessive of 1.1940. The build-up in momentum has waned notably and EUR is not likely to improve for today. Overall, the modern-day motion is considered as phase of a consolidation section and EUR is probably to exchange inside a 1.1880/1.1935 range.”
Next 1-3 weeks: “Two days in the past (24 Nov, spot at 1.1845), we held the view that EUR ‘could exchange sideways for a length of time and solely a spoil out of the anticipated 1.1760/1.1920 vary would point out the begin of a extra sustained directional movement’. While EUR cracked the stable resistance at 1.1920 yesterday, the subsequent charge movements had been fairly muted (high of 1.1929). That said, in addition EUR energy is anticipated even although any enhance should be gradual going and the subsequent resistance at 1.1980 may also now not come into the image so soon. On the downside, a spoil of 1.1840 (‘strong support’ level) would point out that the threat for in addition EUR power has dissipated.”