EUR/USD still targets a breakout of 1.1910 – UOB

FX Strategists at UOB Group still view EUR/USD surpassing the 1.1910 level in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that “upward momentum has eased somewhat and this coupled with overbought conditions suggests that EUR is unlikely to strengthen much further” and we expected EUR to “trade sideways between 1.1865 and 1.1910”. However, EUR traded within a lower (and narrower) range than expected (1.1854/1.1886). Momentum indicators are mostly neutral and further sideway-trading would not be surprising. Expected range for today, 1.1855/1.1895.”

Next 1-3 weeks: “Our update from yesterday (06 Sep, spot at 1.1885) still stands. As highlighted, while overbought shorter-term conditions could lead to a couple of days of consolidation first, a clear break of the major resistance at 1.1910 would not be surprising. That said, the prospect for the current EUR strength to extend to 1.1970 is not high for now. On the downside, a break of 1.1830 (no change in ‘strong support’ level) would indicate that the EUR strength that started 2 weeks ago has run its course.”