EUR/USD could test 1.1422 on a breakout of 1.1380 – UOB

FX Strategists at UOB Group see EUR/USD advancing to the 1.1420 region on a close of 1.1380.

Key Quotes

24-hour view: “Our expectation for EUR to ‘test the strong resistance at 1.1380’ was incorrect as it slumped after touching 1.1332. Upward momentum has eased and EUR has likely moved into a consolidation phase. For today, EUR is likely to trade sideways between 1.1240 and 1.1320.”

Next 1-3 weeks: “EUR closed on a relatively strong note yesterday (1.1308, +0.53%) and upward momentum is beginning to pick up. However, it appears to be too early to expect a sustained advance. EUR has to close above the top of our expected sideway-trading range of 1.1170/1.1380 in order to indicate that it is ready to move to last month’s peak at 1.1422. At this stage, the prospect for such a move is not high but it would continue to increase as long as EUR does not move below 1.1240 within these few days.”