EUR/USD: Further upside seen above 1.1970 – UOB

FX Strategists at UOB Group expect EUR/USD to accelerate gains if 1.1970 is cleared in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that ‘momentum indicators are mostly neutral’ and we expected EUR to ‘trade between 1.1890 and 1.1960’. EUR subsequently traded within a narrower range than expected (1.1916/1.1956). The price actions offer no fresh clues and EUR could continue to trade sideways. Expected range for today, 1.1890/1.1955.”

Next 1-3 weeks: “EUR traded in a quiet manner yesterday (24 Jun) before closing largely unchanged at 1.1930 (+0.04%). Our latest narrative from Wednesday (23 Jun, spot at 1.1940) still stands. As highlighted, the recent rebound in EUR has been more resilient than expected and a break of 1.1970 would indicate that the weak phase that started early last week has run its course. Downward momentum is beginning to wane and unless EUR move and stay below 1.1890 within these 1 to 2 days, a break of 1.1970 would not be surprising.”