EUR/USD still targets 1.10 and above – UOB

FX Strategists at UOB Group expects the pair to advance above the critical 1.10 handle in the near term.

Key Quotes

“EUR traded in a range of 1.0850/1.0932 yesterday, lower than the expected consolidation range of 1.0860/1.0940. The daily closing is on the weak side but weak downward momentum suggests a slow drift lower towards the strong support at 1.0830 (next support at 1.0800). Resistance is at 1.0895 but only a break above 1.0930 would indicate that the current downward bias has eased”.

“While the relatively weak daily closing has dented the upward momentum, it is still early to expect a short-term top. As long as 1.0830 is intact, we continue to anticipate a break a move above 1.1000 even though we must admit that the odds for such a move have diminished”.