EUR/USD now targets 1.2570, 1.2660 – UOB

According to FX Strategists at UOB Group, the pair could attempt a test of the 1.2570 area and 1.2660 in the next weeks.

Key Quotes

24-hour view: “The ‘target’ indicated at 1.2355 yesterday was exceeded by a wide margin as EUR surged to a high of 1.2415. While clearly overbought, the strong rally appears to have some ‘juice’ left to test the next resistance at 1.2440. At this stage, further extension to the 1.2500 seems unlikely. On the downside, 1.2320 is expected to be strong enough to hold any intraday pull-back (minor support is at 1.2355)”.

Next 1-3 weeks: “We mentioned yesterday that in order to revive the flagging momentum, EUR has to “stage a clear push above last week’s top near 1.2325 within these 1 to 2 days”. EUR blast past this level in a hurry and surged to hit a high of 1.2415, not far from the revised ‘target’ of 1.2440. The bullish phase that started last Monday is still clearly intact and the next ‘target’ above 1.2440 is at 1.2570 followed by 1.2660. The latter level is a solid resistance from a longer-term perspective. On the downside, support is at 1.2320 but only a break of 1.2290 (‘stop-loss’ adjusted from 1.2210) would indicate that an interim top is in place”.